Dell 2002 Annual Report Download - page 48

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Table of Contents
The following table summarizes stock option activity for the Option Plans:
Fiscal Year Ended
January 31, 2003 February 1, 2002 February 2, 2001
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 350 $ 26.36 344 $ 24.36 320 $ 11.39
Granted 84 26.37 126 23.24 154 37.78
Exercised (22) 7.69 (63) 3.11 (95) 3.26
Cancelled (25) 31.75 (57) 32.86 (35) 22.18
Options outstanding — end of year 387 27.09 350 26.36 344 24.36
Options exercisable — end of year 130 $ 22.59 98 $ 17.49 100 $ 8.78
The following is additional information relating to options for the Option Plans outstanding as of January 31, 2003:
Options Outstanding Options Exercisable
Weighted-
Weighted- Average Weighted-
Number Average Remaining Number Average
of Exercise Contractual of Exercise
Shares Price Life (Years) Shares Price
(share data in millions)
$0.01- $1.49 21 $ 0.99 3 21 $ 0.99
$1.50-$14.99 28 $ 7.47 4 28 $ 7.47
$15.00-$24.99 112 $ 22.52 8 24 $ 21.76
$25.00-$34.99 104 $ 27.23 9 16 $ 29.80
$35.00 and over 122 $ 40.14 7 41 $ 41.75
387 130
There were 365 million, 290 million, and 254 million options to purchase the Company's common stock available for future grants under the Option Plans at
January 31, 2003, February 1, 2002, and February 2, 2001, respectively. During fiscal year 2003, the Company ceased granting options under the 1994
Incentive Plan and the Broad-Based Plan and will not grant any additional options under either of these two plans. All of the shares available for future grants
as of January 31, 2003 are available for grant under the 2002 Incentive Plan.
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 29 million shares at January 31, 2003, 33 million
shares at February 1, 2002, and 39 million shares at February 2, 2001. Common stock issued under this plan totaled 4 million shares in fiscal 2003, 6 million
shares in fiscal 2002, and 4 million shares in fiscal 2001.
Restricted Stock Grants — During fiscal 2003, 2002, and 2001, the Company granted 0.3 million shares, 2.1 million shares, and 1.7 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
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