Apple 2015 Annual Report Download - page 65

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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 ($18,000 for calendar
year 2015). 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 $200 million, $163 million and
$135 million in 2015, 2014 and 2013, respectively.
Restricted Stock Units
A summary of the Company’s RSU activity and related information for 2015, 2014 and 2013, is as follows:
Number of
RSUs
(in thousands)
Weighted-Average
Grant Date Fair
Value Per Share
Aggregate
Intrinsic Value
(in millions)
Balance at September 29, 2012 105,037 $ 49.27
RSUs granted 39,415 $ 78.23
RSUs vested (42,291) $ 45.96
RSUs cancelled (8,877) $ 57.31
Balance at September 28, 2013 93,284 $ 62.24
RSUs granted 59,269 $ 74.54
RSUs vested (43,111) $ 57.29
RSUs cancelled (5,620) $ 68.47
Balance at September 27, 2014 103,822 $ 70.98
RSUs granted 45,587 $ 105.51
RSUs vested (41,684) $ 71.32
RSUs cancelled (6,258) $ 80.34
Balance at September 26, 2015 101,467 $ 85.77 $ 11,639
The fair value as of the respective vesting dates of RSUs was $4.8 billion, $3.4 billion and $3.1 billion for 2015, 2014 and 2013,
respectively. The majority of RSUs that vested in 2015, 2014 and 2013 were net-share settled such that the Company withheld shares
with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted
the cash to the appropriate taxing authorities. The total shares withheld were approximately 14.1 million, 15.6 million and 15.5 million for
2015, 2014 and 2013, respectively, and were based on the value of the RSUs on their respective vesting dates as determined by the
Company’s closing stock price. Total payments for the employees’ tax obligations to taxing authorities were $1.6 billion, $1.2 billion and
$1.1 billion in 2015, 2014 and 2013, respectively, and are reflected as a financing activity within the Consolidated Statements of Cash
Flows. These net-share settlements had the effect of share repurchases by the Company as they reduced the number of shares that
would have otherwise been issued as a result of the vesting and did not represent an expense to the Company.
Stock Options
The Company had 1.2 million stock options outstanding as of September 26, 2015, with a weighted-average exercise price per share of
$15.08 and weighted-average remaining contractual term of 4.1 years, substantially all of which are exercisable. The aggregate intrinsic
value of the stock options outstanding as of September 26, 2015 was $120 million, which represents the value of the Company’s closing
stock price on the last trading day of the period in excess of the weighted-average exercise price multiplied by the number of options
outstanding. Total intrinsic value of options at time of exercise was $479 million, $1.5 billion and $1.0 billion for 2015, 2014 and 2013,
respectively.
Apple Inc. | 2015 Form 10-K | 63