Apple 2008 Annual Report Download - page 79

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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 6—Shareholders’ Equity (Continued)
pre-establishes the amounts, prices and dates (or formula for determining the amounts, prices and dates) of future purchases or sales of the
Company’s stock including the exercise and sale of employee stock options and shares acquired pursuant to the Company’s employee stock
purchase plan and upon vesting of RSUs.
Employee Stock Purchase Plan
The Company has a shareholder approved 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
six-month offering periods. 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. The number of shares authorized to be purchased in any calendar year is limited to a total of 3 million shares. As
of September 27, 2008, approximately 6.2 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 IRS annual
contribution limit ($15,500 for calendar year 2008). 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 eligible earnings. The Company’s matching contributions to the Savings Plan were $50
million, $39 million, and $33 million in 2008, 2007, and 2006, respectively.
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