Intel 2002 Annual Report Download - page 32

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We have a goal to keep the potential incremental dilution related to our option program to a long-term average of less than 2% annually.
The dilution percentage is calculated as the new option grants for the year, net of options forfeited by employees leaving the company, divided
by the total outstanding shares at the beginning of the year.
37
Options granted to employees, including officers, and non-employee directors are summarized as follows:
1
(Shares in Millions)
2002
2001
2000
1999
1998
Total options granted
1
174
238
163
96
Less options forfeited
1
(44
)
(47
)
(31
)
(25
)
(35
)
Net options granted
130
191
132
61
Net grants as % of outstanding shares
2
1.9
%
2.8
%
2.0
%
1.2
%
0.9
%
Grants to listed officers
3
as % of total options granted.
1.7
%
0.8
%
0.4
%
0.9
%
3.4
%
Grants to listed officers as % of outstanding shares
<0.1
%
<0.1
%
<0.1
%
<0.1
%
<0.1
%
Cumulative options held by listed officers as % of total
options outstanding
2.1
%
2.0
%
2.4
%
2.9
%
2.8
%
Excluding options assumed in connection with acquisitions.
2
Outstanding shares as of the beginning of each period.
3
"Listed officers" for 2002 are those listed in our proxy statement dated April 10, 2002, defined as our Chief Executive Officer and each of
the four other most highly compensated executive officers.
All stock option grants are made after a review by, and with the approval of, the Compensation Committee of the Board of Directors. All
members of the Compensation Committee are independent directors, as defined in the applicable rules for issuers traded on The NASDAQ Stock
Market*. See the "Report of the Compensation Committee on Executive Compensation" appearing in our most recent proxy statement filed with
the U.S. Securities and Exchange Commission for further information concerning the policies and procedures of the company and the
Compensation Committee regarding the use of stock options. Additional information about the compensation of the listed officers and stock
option grants to the listed officers can also be found in our most recent proxy statement.
For additional information regarding stock option plan activity for 2002, 2001 and 2000, see the reconciliation of options outstanding in
"Note 11: Employee Stock Benefit Plans" in Notes to Consolidated Financial Statements in this report.
In-the-money and out-of-the-money
1
option information as of December 28, 2002 was as follows:
1
Exercisable
Unexercisable
Total
(Shares in Millions)
Shares
Weighted Average
Exercise
Price
Shares
Weighted Average
Exercise
Price
Shares
Weighted Average
Exercise
Price
In
-
the
-
money
133.5
$
6.42
19.5
$
13.76
153.0
$
7.35
Out
-
of
-
the
-
money
140.5
$
26.21
551.9
$
30.06
692.4
$
29.28
Total options outstanding
274.0
$
16.57
571.4
$
29.50
845.4
$
25.31
Out-of-the-money options have an exercise price equal to or above $16.56, the market price of Intel stock at the end of 2002.
38
Options granted to listed officers as a group during 2002 were as follows:
Potential Realizable Values at Assumed Annual Rates of