Creative 2001 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 2001 Creative annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 40

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40

27
In fiscal 1999, Creative granted 2.9 million options under the 1999 Scheme at a weighted average exercise price of
$10.14, which was below fair market value, resulting in deferred share compensation of $5.1 million which is being
amortized over the vesting period of the underlying options.
In fiscal 2000, Creative granted 4.3 million options under the 1999 Scheme at a weighted average exercise price of
$9.14, which was below fair market value, resulting in deferred share compensation of $6.3 million which is being
amortized over the vesting period of the underlying options.
No options were granted under the 1999 Scheme in fiscal 2001.
Effective April 2000, unvested stock options to purchase 0.2 million shares of Creative’s ordinary stock granted
under the New Plan and 1999 Scheme to employees of a subsidiary were canceled in exchange for the right to receive
options granted by the subsidiary. The employees are allowed to retain outstanding options vested on March 31, 2000
till March 31, 2001 whereby any unexercised options were canceled. In May 2000, the subsidiary adopted a separate
stock option plan and employees were then granted options under this plan. See “Subsidiary Stock Option Plan”
below for additional information.
Creative Employee Stock Option Plans
A summary of options granted to employees and non-employee directors under Creative’s stock option plans is
presented below:
Options Outstanding
Number of Shares Weighted Average
(’000) Exercise Price ($)
Balance as of June 30, 1998 5,142 8.14
Granted – at fair market value 324 9.64
– below fair market value 2,879 10.14
Exercised (921) 5.58
Canceled (307) 12.94
Balance as of June 30, 1999 7,117 9.14
Granted – at fair market value 697 11.81
– below fair market value 4,346 9.14
Exercised (2,214) 7.17
Canceled (1,052) 12.54
Balance as of June 30, 2000 8,894 9.44
Granted – at fair market value – –
– below fair market value – –
Exercised (928) 7.31
Canceled (1,185) 13.49
Balance as of June 30, 2001 6,781 9.01
The total number of options exercisable at June 30, 2001, 2000 and 1999 under the New Plan and 1999 Scheme were
3,843,000, 2,594,000 and 1,996,000, respectively.