Apple 2014 Annual Report Download - page 74

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 of Directors and automatic annual grants of RSUs at each annual meeting of
shareholders, and (iii) permits the Board of Directors 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. All RSUs granted under the Director Plan are entitled to 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. As of September 27, 2014, approximately 1.2 million shares were reserved for future issuance under the Director Plan.
Rule 10b5-1 Trading Plans
During the fourth quarter of 2014, Section 16 officers Timothy D. Cook, Luca Maestri, Daniel Riccio, Philip W. Schiller, D. Bruce
Sewell and Jeffrey E. Williams had equity trading plans in place in accordance with Rule 10b5-1(c)(1) under the Exchange Act.
An equity trading plan is a written document that 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 shares acquired pursuant to the
Company’s employee and director equity plans.
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 27, 2014, approximately 7.6 million shares were reserved for
future issuance under the Purchase Plan.
401(k) Plan
The Company’s 401(k) Plan is a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the
401(k) Plan, participating U.S. employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit
($17,500 for calendar year 2014). 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
401(k) Plan were $163 million, $135 million and $114 million in 2014, 2013 and 2012, respectively.
Apple Inc. | 2014 Form 10-K | 72