Apple 2004 Annual Report Download - page 96

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of $25,000 in any calendar year. Beginning with the six-month offering period that started on June 30, 2003, the number of shares authorized for
issuance is limited to a total of 1 million shares per offering period. During 2004, 2003, and 2002, 2.0 million, 2.1 million, and 1.8 million,
respectively were issued under the Purchase Plan. As of September 25, 2004, approximately 2 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 ($13,000 for calendar year 2004). 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 $24 million, $21 million, and $19 million in 2004, 2003, and 2002, respectively.
Stock Option Activity
A summary of the Company's stock option activity and related information for the years ended September 25, 2004, September 27, 2003 and
September 28, 2002 follows (option amounts are presented in thousands):
92
Outstanding Options
Shares
Available
for Grant
Number of
Shares
Weighted Average
Exercise Price
Balance at September 29, 2001
10,075
97,179
$
29.24
Additional Options Authorized
15,000
—
—
Options Granted
(23,239
)
23,239
$
19.89
Options Cancelled
4,737
(4,737
)
$
30.98
Options Exercised
—
(
6,251
)
$
11.99
Plan Shares Expired
(2
)
—
—
Balance at September 28, 2002
6,571
109,430
$
28.17
Restricted Stock Granted
(5,000
)
—
—
Options Granted
(4,179
)
4,179
$
16.38
Options Cancelled
48,443
(48,443
)
$
39.61
Options Exercised
—
(
2,154
)
$
14.04
Plan Shares Expired
(5
)
—
—
Balance at September 27, 2003
45,830
63,012
$
19.08
Restricted Stock Units Granted
(2,515
)
—
—
Options Granted
(18,197
)
18,197
$
22.97
Options Cancelled
3,005
(3,005
)
$
20.70
Options Exercised
—
(
22,843
)
$
17.20
Plan Shares Expired
(16,098
)
—
—
Balance at September 25, 2004
12,025
55,361
$
21.05