AMD 1996 Annual Report Download - page 240

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
than 100 percent of the fair market value of the common stock at the date of
grant. Exercise prices of NSOs range from $0.01 to the fair market value of the
common stock at the date of grant. At December 29, 1996, 2,970 employees were
eligible and participating in the plans.
On July 10, 1996, the Compensation Committee of the Board of Directors of AMD
approved a stock option repricing program pursuant to which employees of the
Company (excluding officers) could elect to cancel certain unexercised stock
options in exchange for new stock options with an exercise price of $11.88,
equal to the closing price of the Company's common stock on the New York Stock
Exchange on July 15, 1996. Approximately 6.1 million options were eligible for
repricing, of which 5.3 million were repriced. The vesting schedules and
expiration dates of repriced stock options were extended by one year, and
certain employees canceled stock options for four shares of common stock in
exchange for repriced options for three shares of common stock.
The following is a summary of stock option activity and related information:
(Shares in thousands)
1996 1995 1994
-----------------------------------------------------------------------------
Weighted-
Average
Exercise Price Price
Options Price Options Per Share Options Per Share
-----------------------------------------------------------------------------
Options:
Outstanding at beginning of year 16,329 $16.77 14,825 $0.50 - $30.25 13,957 $0.50 - $30.25
Granted 11,245 12.96 4,327 3.13 - 35.88 4,389 0.63 - 30.25
Canceled (7,042) 26.64 (510) 0.50 - 35.75 (376) 4.13 - 30.25
Exercised (1,881) 4.07 (2,313) 0.50 - 30.25 (2,218) 4.13 - 24.38
------ ------ ------ -------------- ------ --------------
Outstanding at end of year 18,651 $12.17 16,329 $0.50 - $35.88 15,752 $0.50 - $30.25
====== ====== ====== ============== ====== ==============
Available for grant at beginning of year 751 3,386 1,419
Available for grant at end of year 3,845 751 3,150
----------------- ------------------------- -------------------------
The following table summarizes information about options outstanding at December
29, 1996:
(Shares Options Outstanding Options Exercisable
in thousands) ----------------------------------------------------------------
Weighted-
Average
Remaining Weighted-
Number Contractual Weighted- Number Average
Range of Outstanding Life Average Exercisable Exercise
Exercise Prices at 12/29/96 (Years) Price at 12/29/96 Price
- -----------------------------------------------------------------------------------
$0.01 - $9.38 4,873 5.75 $ 5.33 4,216 $ 5.13
$9.50 - $11.88 6,251 8.46 11.68 1,032 10.92
$12.13 - $14.75 5,083 8.78 13.98 905 12.97
$14.88 - $35.88 2,444 7.37 23.34 1,287 21.96
------ ---- ------ ----- ------
$0.01 - $35.88 18,651 7.69 $12.17 7,440 $ 9.80
====== ==== ====== ===== ======
STOCK PURCHASE PLAN
The Company has an employee stock purchase plan (ESPP) that allows participating
employees to purchase, through payroll deductions, shares of the Company's
common stock at 85 percent of the fair market value at specified dates. At
December 29, 1996, 6,700 employees were eligible to participate in the plan and
551,765 common shares remained available for issuance under the plan. A summary
of stock purchased under the plan is shown below.
(Thousands except 1996 1995 1994
employee participants) ---------------------------------
Aggregate purchase price $13,138 $11,457 $ 8,115
Shares purchased 1,035 501 412
Employee participants 2,963 2,825 1,941
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997