Apple 2011 Annual Report Download - page 68

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1997 Director Stock Plan
The 1997 Director Stock Plan (the “Director Plan”)
is a shareholder approved plan that (i) permits the Company to grant awards of RSUs or
stock options to the Company’s non-employee directors, (ii) provides for automatic initial grants of RSUs upon a non-
employee director joining
the Board and automatic annual grants of RSUs at each annual meeting of shareholders, and (iii) permits the Board to prospectively change the
relative mixture of stock options and RSUs for the initial and annual award grants and the methodology for determining the number of shares of
the Company’
s common stock subject to these grants without shareholder approval. Each share issued with respect to RSUs granted under the
Director Plan reduces the number of shares available for grant under the plan by two shares. The Director Plan expires November 9, 2019. As of
September 24, 2011, approximately 190,000 shares were reserved for future issuance under the Director Plan.
Rule 10b5
-1 Trading Plans
During the fourth quarter of 2011, executive officers Timothy D. Cook, Peter Oppenheimer, D. Bruce Sewell, Phil Schiller and Jeffrey E.
Williams, and directors William V. Campbell and Arthur D. Levinson had trading plans pursuant to Rule 10b5-
1(c)(1) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). A trading plan is a written document that pre-
establishes the amounts, prices and dates
(or a 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 Employee Stock Purchase Plan (the “Purchase Plan”)
is a shareholder approved plan under which substantially all employees may purchase
the Company’
s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the
beginning or the end of six-month offering periods. An employee’
s payroll deductions under the Purchase Plan are limited to 10% of the
employee’
s compensation and employees may not purchase more than $25,000 of stock during any calendar year. As of September 24, 2011,
approximately 3.1 million shares were reserved for future issuance under the Purchase Plan.
Employee Savings Plan
The Employee Savings Plan (the “Savings Plan”)
is 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 ($16,500 for
calendar year 2011). 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 $90 million, $72 million and $59
million in 2011, 2010 and 2009, respectively.
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