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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 6—Shareholders’ Equity (Continued)
Stock Option Activity
A summary of the Company’s stock option activity and related information for the three fiscal years ended September 27, 2008, is as follows (in
thousands, except per share amounts and contractual term in years):
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 $2.0
billion, $1.3 billion, and $1.2 billion for 2008, 2007, and 2006, respectively.
Shares of RSUs granted after April 2005 have been deducted from the shares available for grant under the Company’s stock option plans
utilizing a factor of two times the number of RSUs granted. Similarly shares of RSUs granted after April 2005, that are subsequently cancelled
have been added back to the shares available for grant under the Company’s stock option plans utilizing a factor of two times the number of
RSUs cancelled.
77
Outstanding Options
Shares
Available
for Grant
Number of
Shares
Weighted
-
Average
Exercise Price
Weighted
-
Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
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
Additional shares authorized
28,000
—
—
Restricted stock units granted
(2,640
)
—
—
Options granted
(14,010
)
14,010
$
94.52
Options cancelled
1,471
(1,471
)
$
55.38
Restricted stock units cancelled
20
—
—
Options exercised
—
(
15,770
)
$
18.32
Plan shares expired
(8
)
—
—
Balance at September 29, 2007
67,827
49,751
$
43.91
Restricted stock units granted
(9,834
)
—
—
Options granted
(9,359
)
9,359
$
171.36
Options cancelled
1,236
(1,236
)
$
98.40
Restricted stock units cancelled
714
—
—
Options exercised
—
(
13,728
)
$
27.88
Plan shares expired
(12
)
—
—
Balance at September 27, 2008
50,572
44,146
$
74.39
4.29
$
2,377,262
Exercisable at September 27, 2008
24,751
$
40.93
3.42
$
2,161,010
Expected to Vest after September 27, 2008
18,701
$
117.09
5.40
$
208,517