Apple 2005 Annual Report Download - page 90

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 8—Employee Benefit Plans (Continued)
The options outstanding as of September 24, 2005 have been segregated into eight ranges for additional disclosure as follows (option amounts
are presented in thousands):
As of September 25, 2004, the Company had exercisable options outstanding to purchase 60.0 million shares with a weighted average exercise
price of $10.30 per share. As of September 27, 2003, the Company had exercisable options outstanding to purchase 77.5 million shares with a
weighted average exercise price of $9.38 per share.
The Company had 5.03 million restricted stock units outstanding as of September 24, 2005, which were excluded from the options outstanding
balances in the preceding tables. None of these restricted stock units was vested as of September 24, 2005. These restricted stock units have
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.
88
Options Outstanding
Options Exercisable
Options
Outstanding as of
September 24,
2005
Weighted
-
Average
Remaining
Contractual
Life in Years
Weighted
Average
Exercise
Price
Options
Exercisable as of
September 24,
2005
Weighted
Average
Exercise Price
$0.62-$9.13
10,092
4.29
$
7.33
8,310
$
7.26
$9.14
-
$10.20
14,954
5.65
$
9.76
13,516
$
9.73
$10.21
-
$10.80
2,284
5.19
$
10.31
996
$
10.37
$10.81
-
$10.90
11,726
5.36
$
10.89
2,858
$
10.89
$10.91
-
$11.38
9,151
5.10
$
11.37
2,920
$
11.37
$11.39
-
$23.72
9,622
5.39
$
16.52
5,797
$
17.50
$23.73
-
$46.10
4,791
6.38
$
36.04
406
$
31.62
$46.11-$49.87
10,601
6.94
$
46.75
—
$
—
$0.62-$49.87
73,221
5.53
$
17.79
34,803
$
10.94