Intel 2005 Annual Report Download - page 73

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The range of option exercise prices for options outstanding at December 31, 2005 was $0.05 to $87.90. This range reflects the impact of options
assumed with acquired companies in addition to the fluctuating price of Intel common stock.
The following table summarizes information about options outstanding at December 31, 2005:
These options will expire if not exercised by specific dates through February 2015. Option exercise prices for options exercised during the three-year
period ended December 31, 2005 ranged from $0.01 to $33.60.
Stock Participation Plan
In addition to the employee equity incentive plans, the company has a Stock Participation Plan under which eligible employees may purchase shares of
Intel’s common stock at 85% of the average of the high and low stock price reported on The NASDAQ Stock Market at specific, predetermined dates.
Approximately 70% of the company’s employees were participating in the Stock Participation Plan as of December 31, 2005. Of the 944 million
shares authorized to be issued under the plan, 47.9 million shares remained available for issuance at December 31, 2005. Employees purchased
19.6 million shares in 2005 (18.4 million in 2004 and 23.8 million in 2003) for $387 million ($367 million in 2004 and $328 million in 2003).
Profit Sharing Plans
The company provides tax-
qualified profit sharing retirement plans for the benefit of eligible employees, former employees and retirees in the U.S. and
certain other countries. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide
for annual discretionary employer contributions. Amounts to be contributed to the U.S. Profit Sharing Plan are determined by the Chief Executive
Officer of the company under delegation of authority from the Board of Directors, pursuant to the terms of the Profit Sharing Plan. As of December 31,
2005, approximately 90% of the assets of the U.S. Profit Sharing Plan had been allocated to domestic and international equity index funds and
approximately 10% had been allocated to a fixed income fund. All assets are managed by an outside fund manager, consistent with the investment
policy.
The company also provides a non-qualified profit sharing retirement plan (SERPLUS) for the benefit of eligible employees in the U.S. This plan is
designed to permit certain discretionary employer contributions and to permit employee deferral of a portion of salaries in excess of certain tax limits
and deferral of bonuses. This plan is unfunded.
The company expensed $355 million for the qualified and non-qualified U.S. profit sharing retirement plans in 2005 ($323 million in 2004 and
$302 million in 2003). The company expects to fund approximately $320 million for the 2005 contribution to the U.S. qualified Profit Sharing Plan
and less than $10 million for SERPLUS.
Contributions made by the company to the U.S. Profit Sharing Plan on behalf of the employees 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, or earlier if the employee reaches
age 60.
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Outstanding Options
Exercisable Options
Weighted
Average
Weighted
Weighted
Number of
Contractual
Average
Number of
Average
Shares
Life
Exercise
Shares
Exercise
Range of Exercise Prices
(In Millions)
(In Years)
Price
(In Millions)
Price
$0.05
–
$
15.00
29.0
1.0
$
8.38
28.6
$
8.40
$15.01
–
$
20.00
176.3
4.6
$
18.22
124.6
$
18.34
$20.01
–
$
25.00
354.4
6.1
$
22.61
88.0
$
20.80
$25.01
–
$
30.00
160.4
7.0
$
27.23
68.6
$
26.79
$30.01
–
$
40.00
95.6
4.6
$
33.45
77.1
$
33.78
$40.01
–
$
87.90
84.2
4.3
$
59.45
82.3
$
59.39
Total
899.9
5.5
$
26.71
469.2
$
29.16
Note 12:
Retirement Benefit Plans