Apple 2006 Annual Report Download - page 106

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 8—Shareholders' Equity (Continued)
Stock Option Activity
A summary of the Company’s stock option activity and related information for the last three fiscal years follows (stock award amounts and
aggregate intrinsic value are presented in thousands):
In conjunction with the amendments to the 2003 Plan that were approved at the Annual Meeting of Shareholders held on April 21, 2005, the
number of shares available for grant under the 2003 Plan will be reduced by two times the number of restricted shares and restricted stock units
granted. This amendment is effective for all grants made after April 21, 2005.
Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the fiscal period in excess of the
exercise price multiplied by the number of options outstanding or exercisable. Total intrinsic value of options at time of exercise was $1.2
billion, $1.1 billion, and $266.9 million for 2006, 2005, and 2004, respectively.
As of September 30, 2006, the Company had 3.41 million restricted stock units outstanding with a total grant-date fair value of $135.1 million
that were excluded from the options outstanding balances in the preceding table. The weighted-average grant date fair value of restricted stock
units granted during 2006, 2005, and 2004 was $70.92, $45.04, and $12.81, respectively. Aggregate intrinsic value of unvested restricted stock
units at September 30, 2006 was $262.5 million. Restricted stock units that vested during 2006 totaled 2.47 million and had a fair value of
$148.5 million as of the vesting date. Granted restricted stock units have been deducted from the shares available for grant under the
Company’s stock option plans.
105
Outstanding Options
Shares
Available
Number of
Weighted
-
Average
Weighted
-
Average
Remaining
Aggregate
for Grant
Shares
Exercise Price
Contractual Term
Intrinsic Value
Balance at September 27, 2003
91,660
126,024
$
9.54
Restricted Stock Granted
(5,030
)
—
—
Options Granted
(36,394
)
36,394
$
11.48
Options Cancelled
6,010
(6,010
)
$
10.35
Options Exercised
—
(
45,686
)
$
8.60
Plan Shares Expired
(32,196
)
—
—
Balance at September 25, 2004
24,050
110,722
$
10.52
Additional Options Authorized
49,000
—
—
Restricted Stock Units Granted
(460
)
—
—
Options Granted
(16,214
)
16,214
$
42.52
Options Cancelled
3,844
(3,844
)
$
13.28
Restricted Stock Units Cancelled
230
—
—
Options Exercised
—
(
49,871
)
$
10.05
Plan Shares Expired
(1,493
)
—
—
Balance at September 24, 2005
58,957
73,221
$
17.79
Restricted Stock Units Granted
(2,950
)
—
Options Granted
(3,881
)
3,881
$
65.28
Options Cancelled
2,325
(2,325
)
$
29.32
Restricted Stock Units Cancelled
625
—
—
Options Exercised
—
(
21,795
)
$
11.78
Plan Shares Expired
(82
)
—
—
Balance at September 30, 2006
54,994
52,982
$
23.23
4.78
$
2,848,896
Exercisable at September 30, 2006
31,184
$
14.69
4.35
$
1,942,486
Expected to Vest after September 30, 2006
21,798
$
35.40
5.40
$
906,410