Intel 1995 Annual Report Download - page 27

The range of exercise prices for options outstanding under the EOP Plan at December 30, 1995 was $3.13 to $69.43. These options will expire
if not exercised at specific dates ranging from January 1996 to December 2005. Prices for options exercised during the three-year period ended
December 30, 1995 ranged from $3.04 to $36.13.
Activity for the ELTSOP Plan is summarized below:
The range of exercise prices for options outstanding under the ELTSOP Plan at December 30, 1995 was $7.31 to $60.48.
These options will expire if not exercised at specific dates ranging from April 1999 to September 2005. Prices for options exercised during the
three-year period ended December 30, 1995 ranged from $7.31 to $7.34.
Stock participation plan. Under this plan, eligible employees may purchase shares of Intel's Common Stock at 85% of fair market value at
specific, predetermined dates. Of the 59.0 million shares authorized to be issued under the plan, 11.9 million shares were available for issuance
at December 30, 1995. Employees purchased 3.5 million shares in 1995 (4.0 million and 4.4 million in 1994 and 1993, respectively) for $110
million ($94 million and $71 million in 1994 and 1993, respectively).
Retirement plans. The Company provides tax-qualified profit-sharing retirement plans (the "Qualified Plans") for the benefit of eligible
employees in the U.S. and Puerto Rico. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-
deferred basis and provide for annual discretionary contributions to trust funds.
The Company also provides a non-qualified profit-sharing retirement plan (the "Non-Qualified Plan") for the benefit of eligible employees in
the U.S. This plan is designed to permit certain discretionary employer contributions in excess of the tax limits applicable to the Qualified
Plans and to permit employee deferrals in excess of certain tax limits. This plan is unfunded. The Company accrued $188 million for the
Qualified Plans and the Non-Qualified Plan in 1995 ($152 million in 1994 and $103 million in 1993). Of the $188 million accrued in 1995, the
Company expects to fund approximately $145 million for the 1995 contribution to the Qualified Plans and to allocate approximately $6 million
for the Non-Qualified Plan. The remainder, plus approximately $140 million carried forward from prior years, is expected to be contributed to
these plans when allowable under IRS regulations and plan rules. Contributions made by the Company vest based on the employee's years of
service. Vesting begins after three years of service in 20% annual increments until the employee is 100% vested after seven years.
The Company provides tax-qualified defined-benefit pension plans for the benefit of eligible employees in the U.S. and Puerto Rico. Each plan
provides for minimum pension benefits that are determined by a participant's years of service, final average compensation (taking into account
the participant's social security wage base) and the value of the Company's contributions, plus earnings, in the Qualified Plan. If the balance in
the participant's Qualified Plan exceeds the pension guarantee, the participant will receive benefits from the Qualified Plan only. Intel's funding
policy is consistent with the funding requirements of federal laws and regulations.
Pension expense for 1995, 1994 and 1993 for the U.S. and Puerto Rico plans was less than $1 million per year, and no component of expense
exceeded $2 million. The funded status of these plans as of December 30, 1995 and December 31, 1994 was as follows:
Grants (13.5) 13.5 645
Exercises -- (9.8) (81)
Cancellations 3.0 (3.0) (77)
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December 30, 1995 31.1 80.9 $ 1,743
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Options exercisable at:
December 25, 1993 20.4 $ 135
December 31, 1994 26.2 $ 198
December 30, 1995 25.3 $ 236
Outstanding options
Shares -------------------
available Number Aggregate
(In millions) for options of shares price
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December 26, 1992 13.2 6.0 $ 44
Grants (0.4) 0.4 11
Exercises -- (0.8) (6)
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December 25, 1993 12.8 5.6 49
Exercises -- (0.6) (4)
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December 31, 1994 12.8 5.0 45
Grants (0.5) 0.5 30
Exercises -- (0.9) (6)
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December 30, 1995 12.3 4.6 $ 69
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Options exercisable at:
December 25, 1993 1.4 $ 11
December 31, 1994 2.6 $ 19
December 30, 1995 3.8 $ 29
(In millions) 1995 1994
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Vested benefit obligation $ (3) $ (3)
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Accumulated benefit obligation $ (4) $ (3)