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88
and $12 million, respectively. The Company also contributed approximately $3 million, $5 million, and $7
million to its other benefit plans outside of the United States for 2003, 2004, and 2005, respectively.
Stock Option Plans. The Company’s 1995 Stock Plan and stock option plans assumed through
acquisitions are collectively referred to as the “Plans.”
The Plans provide for the issuance of equity-based awards to employees, including executive officers and
consultants. Options granted under the 1995 Stock Plan before May 19, 2005 generally expire ten years
after the grant date and options granted after May 19, 2005 generally expire seven years after the grant
date. Options generally become exercisable over a four-year period based on continued employment and
vest either monthly, quarterly, semi-annually, or annually. The termination date of the 1995 Stock Plan is
May 2013. During the year, the 1995 Stock Plan was amended to increase the number of shares of
common stock available for award grants by 80 million shares to 654 million shares. The 1995 Stock Plan
permits the granting of incentive stock options, non-statutory stock options, restricted stock, restricted
stock units, stock appreciation rights, indexed options and dividend equivalents. Shares available for
future grants under the Plans as of December 31, 2005 totaled approximately 88 million shares.
The 1996 Directors’ Stock Option Plan (the “Directors’ Plan”) provides for the issuance of up to
approximately 9 million non-statutory stock options to non-employee directors of the Company. Options
granted under the Directors’ Plan vest in equal monthly installments over four years for initial grants to
new directors and over four years for annual grants, with 25 percent of such options vesting on the one-
year anniversary of the date of grant, with the remaining options vesting in equal monthly installments over
the 36-month period thereafter. The termination date of the Directors’ Plan is April 2015. The Directors’
Plan provides for an initial grant to outside Directors of 100,000 options and an annual grant to outside
Directors of 50,000 options. Shares available for future grants under the Directors’ Plan as of
December 31, 2005 totaled approximately 5 million shares.
Activity under the Company’s stock option plans is summarized as follows (in thousands, except per share
amounts):
Options
Outstanding
Weighted Average
Exercise Price
per Share
Balance as of December 31, 2002 264,968 $ 18.41
Options assumed 21,630 17.39
Options granted 41,212 17.60
Options exercised (48,706 ) 6.94
Options canceled (31,474 ) 27.14
Balance as of December 31, 2003 247,630 19.32
Options assumed 224 5.77
Options granted 40,189 31.07
Options exercised (59,463 ) 10.36
Options canceled (15,879 ) 24.22
Balance as of December 31, 2004 212,701 23.67
Options assumed 193 0.63
Options granted 33,403 36.39
Options exercised (50,920 ) 13.44
Options canceled (12,683 ) 33.93
Balance as of December 31, 2005 182,694 $ 28.11