Intel 1994 Annual Report Download - page 27

The Company has also received an examination report for the years 1983 through 1987. Intel has lodged a protest, which relates solely to the
export source issue referenced above, to the IRS Appeals Office, but no decisions have been reached.
The Company's U.S. income tax returns for the years 1988 through 1990 are presently under examination by the IRS. Final proposed
adjustments have not yet been received for these years. Management believes that adequate amounts of tax and related interest and penalties, if
any, have been provided for any adjustments that may result from unsettled portions of the 1978-1987 cases or the years now under
examination.
EMPLOYEE BENEFIT PLANS
STOCK OPTION PLANS. Intel has stock option plans (hereafter referred to as the EOP Plans) under which officers, key employees and non-
employee directors may be granted options to purchase shares of the Company's authorized but unissued Common Stock. The Company also
has an Executive Long-Term Stock Option Plan (ELTSOP) under which certain key executive officers may be granted options to purchase
shares of the Company's authorized but unissued Common Stock. Under all plans, the option purchase price is not less than fair market value at
the date of grant.
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Options currently expire no later than ten years from the grant date. Proceeds received by the Company from exercises are credited to Common
Stock and capital in excess of par value. Additional information on EOP Plan activity is as follows:
The range of exercise prices for options outstanding at December 31, 1994 was $6.08 to $72.25. These options expire if not exercised at
specific dates ranging from January 1995 to December 2004. Prices for options exercised during the three-year period ended December 31,
1994 ranged from $3.52 to $58.78. Activity for the ELTSOP Plan is summarized below:
Outstanding options
Shares ---------------------------
available Number Aggregate
(In millions) for options of shares price
- ------------------------------------------------------------------------------
December 28, 1991 38.1 39.0 $ 585
Grants (7.3) 7.3 195
Exercises -- (7.6) (78)
Cancellations 1.9 (1.9) (33)
------- ------- -------
December 26, 1992 32.7 36.8 669
Grants (7.6) 7.6 357
Exercises -- (4.5) (56)
Cancellations 0.9 (0.9) (24)
------- ------- -------
December 25, 1993 26.0 39.0 946
Grants (6.0) 6.0 397
Exercises -- (4.1) (54)
Cancellations 0.8 (0.8) (33)
------- ------- -------
December 31, 1994 20.8 40.1 $1,256
======= ======= =======
Options exercisable at:
December 26, 1992 9.8 $ 109
December 25, 1993 10.2 $ 135
December 31, 1994 13.1 $ 198
Outstanding options
Shares -------------------------
available Number Aggregate
(In millions) for options of shares price
- ----------------------------------------------------------------------------
December 28, 1991 6.4 3.5 $ 51
Exercises -- (0.3) (4)
Cancellations 0.2 (0.2) (3)
------- ------- -------
December 26, 1992 6.6 3.0 44
Grants (0.2) 0.2 11
Exercises -- (0.4) (6)
------- ------- -------
December 25, 1993 6.4 2.8 49
Exercises -- (0.3) (4)
------- ------- -------
December 31, 1994 6.4 2.5 $ 45
======= ======= =======
Options exercisable at:
December 26, 1992 0.5 $ 7
December 25, 1993 0.7 $ 11