Dell 2001 Annual Report Download - page 49

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Table of Contents
The following table summarizes stock option activity for the Option Plans:
Fiscal Year Ended
February 1, 2002 February 2, 2001 January 28, 2000
Weighted- Weighted- Weighted-
Number Average Number Average Number Average
of Exercise of Exercise of Exercise
Options Price Options Price Options Price
(share data in millions)
Options outstanding — beginning of year 344 $ 24.36 320 $ 11.39 363 $ 5.40
Granted 126 23.24 154 37.78 50 42.86
Exercised (63) 3.11 (95) 3.26 (77) 2.48
Cancelled (57) 32.86 (35) 22.18 (16) 9.89
Options outstanding — end of year 350 26.36 344 24.36 320 11.39
Options exercisable — end of year 98 $ 17.49 100 $ 8.78 112 $ 3.96
The following is additional information relating to options for the Option Plans outstanding as of February 1, 2002:
Options Outstanding Options Exercisable
Weighted
Weighted Average
Number Average Remaining Number Average
Of Exercise Contractual Of Exercise
Shares Price Life (Years) Shares Price
(share data in millions)
$ 0.01-$ 1.49 30 $ 0.96 3.49 30 $ 0.98
$ 1.50-$14.99 38 $ 7.34 5.34 28 $ 7.13
$15.00-$22.49 53 $ 21.35 9.12 3 $ 17.35
$22.50-$24.00 41 $ 22.94 9.02 — $ 23.42
$24.01-$35.99 53 $ 26.99 8.30 12 $ 30.07
$36.00-$37.59 86 $ 37.59 8.54 9 $ 37.58
$37.60-$57.82 49 $ 44.69 7.89 16 $ 44.85
350 98
There were 290 million, 254 million, and 264 million options to purchase the Company's common stock available for future grants under the Option Plans at
February 1, 2002, February 2, 2001, and January 28, 2000, respectively.
Employee Stock Purchase Plan — The Company also has an employee stock purchase plan that qualifies under Section 423 of the Internal Revenue Code and
permits substantially all employees to purchase shares of common stock. Participating employees may purchase common stock through payroll deductions at
the end of each participation period at a purchase price equal to 85% of the lower of the fair market value of the common stock at the beginning or the end of
the participation period. Common stock reserved for future employee purchases under the plan aggregated 33 million shares at February 1, 2002, 39 million
shares at February 2, 2001, and 44 million shares at January 28, 2000. Common stock issued under this plan totaled six million shares in fiscal 2002, four
million shares in fiscal 2001, and three million shares in fiscal 2000.
Restricted Stock Grants — During fiscal 2002, 2001, and 2000, the Company granted 2.1 million shares, 1.7 million shares, and 1.4 million shares,
respectively, of restricted stock. For substantially all restricted stock grants, at the date of grant, the recipient has all rights of a stockholder, subject to certain
restrictions on transferability and a risk of forfeiture. Restricted shares typically vest over a seven-year period beginning on the date of grant. The Company
records unearned compensation in stockholders' equity equal to the market value of the restricted shares on the date of grant and charges the unearned
compensation to expense over the vesting period.
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