Intel 2004 Annual Report Download - page 72

Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table summarizes information about options outstanding at December 25, 2004:
These options will expire if not exercised at specific dates through May 2014. Option exercise prices for options exercised during the
three-year period ended December 25, 2004 ranged from $0.01 to $36.47.
Stock Participation Plan
In addition to the employee stock option 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 25,
2004. Of the 944 million shares authorized to be issued under the plan, 67.5 million shares remained available for issuance at December 25,
2004. Employees purchased 18.4 million shares in 2004 (23.8 million in 2003 and 17.0 million in 2002) for $367 million ($328 million in 2003
and $338 million in 2002).
Note 12: Retirement Benefit Plans
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 25, 2004, substantially all of the assets of the U.S. Profit Sharing Plan have been allocated to an equity
index fund managed by an outside fund manager, consistent with the investment policy.
The company also provides a non-qualified profit sharing retirement plan 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 $323 million for the qualified and non-qualified U.S. profit sharing retirement plans in 2004 ($302 million in
2003 and $303 million in 2002). The company expects to fund approximately $315 million for the 2004 contribution to the U.S. qualified Profit
Sharing Plan and to allocate approximately $5 million for the U.S. non-qualified profit sharing retirement plan.
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.
65
Outstanding Options Exercisable Options
Range of Exercise Prices
Number of
Shares
(In Millions)
Weighted
Average
Contractual
Life
(In Years)
Weighted
Average
Exercise
Price
Number of
Shares
(In Millions)
Weighted
Average
Exercise
Price
$0.05
–
$
15.00
64.2
1.3
$
7.65
63.9
$
7.62
$15.01
–
$
20.00
197.6
5.5
$
18.22
117.7
$
18.34
$20.01
–
$
25.00
267.7
7.0
$
22.32
65.1
$
20.82
$25.01
–
$
30.00
163.0
8.0
$
27.22
46.1
$
26.51
$30.01
–
$
40.00
101.8
5.6
$
33.41
72.9
$
33.48
$40.01
–
$
87.90
89.6
5.3
$
59.27
31.8
$
56.84
Total
883.9
6.1
$
26.26
397.5
$
23.83