ADT 2000 Annual Report Download - page 53

FIFTY ONE
Committee of the Board of Directors of the Company, which consists
exclusively of independent directors of the Company. Options are
granted to purchase common shares at prices which are equal to or
greater than the market price of the common shares on the date the
option is granted. Conditions of vesting are determined at the time
of grant. Options which have been granted under the Incentive Plan
to date have generally vested and become exercisable over periods
of up to five years from the date of grant and have a maximum term
of ten years. The Company has reserved 140.0 million common
shares for issuance under the Incentive Plan. Awards which the
Company becomes obligated to make through the assumption of, or
in substitution for, outstanding awards previously granted by an
acquired company are assumed and administered under the Incen-
tive Plan but do not count against this limit. At September 30, 2000,
there were approximately 37.0 million shares available for future
grant under the Incentive Plan. During October 1998, a broad-based
option plan for non-officer employees, the Tyco Long-Term Incentive
Plan II (“LTIP II”), was approved by the Board of Directors. The Com-
pany has reserved 50.0 million common shares for issuance under
the LTIP II. The terms and conditions of this plan are similar to the
Incentive Plan. At September 30, 2000, there were approximately
17.2 million shares available for future grant under the LTIP II.
In connection with the acquisitions of Raychem in Fiscal 1999
and CIPE S.A. and Holmes Protection in Fiscal 1998, options out-
standing under the respective stock option plans of these companies
were assumed under the Incentive Plan. In connection with the
mergers occurring in Fiscal 1999 (See Note 2), all of the options
outstanding under the USSC and AMP stock option plans were
assumed under the Incentive Plan. These options are administered
under the Incentive Plan but retain all of the rights, terms and condi-
tions of the respective plans under which they were originally granted.
Share option activity for all Tyco plans since September 30,
1997 has been as follows:
WEIGHTED-
AVERAGE
EXERCISE
OUTSTANDI NG PRICE
At September 30, 1997 107,261,072 $17 .03
Assumed from acquisition 87,232 10.23
Granted 32,011,414 23.51
Exercised (37,626,616) 9.20
Canceled (7,281,946) 27.48
At September 30, 1998 94,451,156 24.83
Assumed from acquisition 8,883,160 37.44
Granted 30,313,362 38.44
Exercised (43,180,390) 22.79
Canceled (4,476,021) 47.83
At September 30, 1999 85,991,267 27.91
Granted 30,355,027 44.30
Exercised (17,240,959) 20.72
Canceled (4,090,184) 37.25
At September 30, 2000 95,015,151 $32.01
The following table summarizes information about outstanding and exercisable Tyco options at September 30, 2000:
OPTIONS OUTSTANDING OPTIONS EXERCISABLE
WEIGHTED-
WEIGHTED- AVERAGE WEIGHTED-
AVERAGE REMAIN I N G AVERAGE
RANGE OF NUMBER EXERCISE CONTRACTUAL NUMBER EXERCISE
EXERCISE PRICES OUTSTANDI NG PRI CE LIFE — YEARS EXERCISABLE PRICE
$ 0.00 to $ 4.98 541,696 $ 4.11 2.8 541,696 $ 4.11
4.99 to 7.44 4,792,734 6.58 4.5 4,792,734 6.58
7.45 to 9.98 1,503,739 8.85 5.2 1,157,128 8.86
9.99 to 11.76 780,224 10.84 5.8 421,916 10.84
11.77 to 14.88 2,807,377 14.03 5.9 2,053,457 13.98
14.89 to 19.97 8,025,566 18.88 6.7 6,619,681 18.80
19.98 to 24.93 9,164,125 21.63 6.4 8,182,205 21.72
24.94 to 29.87 9,339,844 28.19 7.5 4,315,879 28.27
29.88 to 31.80 5,057,521 31.41 6.3 5,031,454 31.41
31.81 to 34.42 2,226,357 32.79 7.7 1,416,219 32.83
34.43 to 44.62 30,989,158 38.61 8.8 2,484,907 38.96
44.63 to 50.00 8,580,994 49.43 8.4 6,888,088 49.65
50.01 to 52.01 2,916,906 51.01 8.7 2,906,302 51.01
52.02 to 75.00 8,288,910 59.14 8.7 6,208,686 58.52
Total 95,015,151 53,020,352