Apple 2004 Annual Report Download - page 97

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The options outstanding as of September 25, 2004 have been segregated into five ranges for additional disclosure as follows (option amounts are
presented in thousands):
As of September 27, 2003, the Company had exercisable options to purchase 38.8 million shares outstanding with a weighted average exercise
price of $18.75 per share. As of September 28, 2002, the Company had exercisable options to purchase 57.9 million shares outstanding with a
weighted average exercise price of $30.85 per share.
The Company had 2.515 million restricted stock units outstanding as of September 25, 2004, which were excluded from the options outstanding
balances in the preceding tables. None of these restricted stock units were vested as of September 25, 2004. The grant of these restricted stock
units has been deducted from the shares available for grant under the Company's stock option plans.
Note 9—Stock-Based Compensation
The Company has provided pro forma disclosures in Note 1 of these Notes to Consolidated Financial Statements of the effect on net income and
earnings per share as if the fair value method of accounting for stock compensation had been used for its employee stock option grants and
employee stock purchase plan purchases. These pro forma effects have been estimated at the date of grant and beginning of the period,
respectively, using the Black-Scholes option pricing model.
For purposes of the pro forma disclosures provided pursuant to SFAS No. 123, the option awards issued in October 2003 and the awards
cancelled as part of the Employee Stock Option Exchange Program have been accounted for using modification accounting. In accordance with
SFAS No. 123, the grant date of the awards issued is the date of acceptance of the exchange offer by participating employees. The cancellation
of certain of the Company's CEO's options and replacement with restricted shares in March 2003 is also being accounted for using modification
accounting for purposes of the pro forma disclosures provided pursuant to SFAS No. 123.
93
Options Outstanding
Options Exercisable
Options
Outstanding as of
September 25,
2004
Weighted-
Average
Remaining
Contractual
Life in Years
Weighted
Average
Exercise
Price
Options
Exercisable as of
September 25,
2004
Weighted
Average
Exercise
Price
$0.83
-
$15.59
6,426
4.65
$
12.26
4,958
$
11.59
$15.60
-
$18.50
15,729
5.87
$
17.94
12,969
$
18.04
$18.51
-
$20.54
9,998
6.91
$
20.26
5,769
$
20.25
$20.55
-
$22.76
15,109
6.23
$
22.20
1,401
$
21.77
$22.77
-
$69.78
8,099
6.24
$
32.90
4,926
$
36.46
$0.83
-
$69.78
55,361
6.07
$
21.05
30,023
$
20.59