Apple 2014 Annual Report Download - page 73

The following table shows the changes in AOCI by component for 2014 (in millions):
Cumulative
Foreign
Currency
Translation
Unrecognized
Gains/Losses
on Derivative
Instruments
Unrealized
Gains
/Losses on
Marketable
Securities Total
Balance at September 28, 2013 $ (105) $ (175) $ (191) $ (471)
Other comprehensive income/(loss) before reclassifications (187) 1,687 438 1,938
Amounts reclassified from AOCI 0 185 (205) (20)
Tax effect 50 (333) (82) (365)
Other comprehensive income/(loss) (137) 1,539 151 1,553
Balance at September 27, 2014 $ (242) $1,364 $ (40) $1,082
Note 9 – Benefit Plans
Stock Plans
2014 Employee Stock Plan
In the second quarter of 2014, shareholders approved the 2014 Employee Stock Plan (the “2014 Plan”) and terminated the
Company’s authority to grant new awards under the 2003 Employee Stock Plan (the “2003 Plan”). The 2014 Plan provides for
broad-based equity grants to employees, including executive officers, and permits the granting of RSUs, stock grants,
performance-based awards, stock options and stock appreciation rights, as well as cash bonus awards. RSUs granted under
the 2014 Plan generally vest over four years, based on continued employment, and are settled upon vesting in shares of the
Company’s common stock on a one-for-one basis. Each share issued with respect to RSUs granted under the 2014 Plan
reduces the number of shares available for grant under the plan by two shares. RSUs cancelled and shares withheld to satisfy
tax withholding obligations increase the number of shares available for grant under the 2014 Plan utilizing a factor of two times
the number of RSUs cancelled or shares withheld. Currently, all RSUs granted under the 2014 Plan have dividend equivalent
rights (“DERs”), which entitle holders of RSUs to the same dividend value per share as holders of common stock. DERs are
subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. DERs are accumulated and
paid when the underlying shares vest. Upon approval of the 2014 Plan, the Company reserved 385 million shares plus the
number of shares remaining that were reserved but not issued under the 2003 Plan. Shares subject to outstanding awards
under the 2003 Plan that expire, are cancelled or otherwise terminate, or are withheld to satisfy tax withholding obligations with
respect to RSUs, will also be available for awards under the 2014 Plan. As of September 27, 2014, approximately 492.6 million
shares were reserved for future issuance under the 2014 Plan.
2003 Employee Stock Plan
The 2003 Plan is a shareholder approved plan that provided for broad-based equity grants to employees, including executive
officers. The 2003 Plan permitted the granting of incentive stock options, nonstatutory stock options, RSUs, stock appreciation
rights, stock purchase rights and performance-based awards. Options granted under the 2003 Plan generally expire seven to
ten years after the grant date and generally become exercisable over a period of four years, based on continued employment,
with either annual, semi-annual or quarterly vesting. RSUs granted under the 2003 Plan generally vest over two to four years,
based on continued employment and are settled upon vesting in shares of the Company’s common stock on a one-for-one
basis. All RSUs, other than RSUs held by the Chief Executive Officer, granted under the 2003 Plan have DERs. DERs are
subject to the same vesting and other terms and conditions as the corresponding unvested RSUs. DERs are accumulated and
paid when the underlying shares vest. In the second quarter of 2014, the Company terminated the authority to grant new
awards under the 2003 Plan.
Apple Inc. | 2014 Form 10-K | 71