Dell 2003 Annual Report Download - page 48
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Table of Contents
• The Dell Computer Corporation 1998 Broad-Based Stock Option Plan (the "1998 Broad-Based Plan"), and
• The Dell Computer Corporation 2002 Long-Term Incentive Plan (the "2002 Incentive Plan")
The Option Plans are administered by the Compensation Committee of Dell's Board of Directors.
The 1989 Option Plan, the 1994 Incentive Plan, and the 1998 Broad-Based Plan have been terminated (except for options previously granted under those
plans that are still outstanding). Consequently, awards are currently only being made under the 2002 Incentive Plan.
The 2002 Incentive Plan provides for the granting of stock-based incentive awards to Dell's employees, nonemployee directors, and certain consultants and
advisors to Dell. Awards may be either incentive stock options within the meaning of Section 422 of the Internal Revenue Code or nonqualified options. The
right to purchase shares pursuant to existing stock option agreements typically vests pro-rata at each option anniversary date over a five-year period. The
options are generally granted at fair market value and must be exercised within ten years from the date of grant. Dell has not issued any options to consultants
or advisors to the company since fiscal 1999.
There were 327 million, 365 million, and 290 million options to purchase Dell's common stock available for future grants under the Option Plans as of
January 30, 2004, January 31, 2003, and February 1, 2002, respectively. All of the shares available for future grants as of January 30, 2004 are under the 2002
Incentive Plan.
The following table summarizes stock option activity for the Option Plans:
Fiscal Year Ended
January 30, 2004 January 31, 2003 February 1, 2002
Weighted- Weighted- Weighted-
Number Average Number Average Number Average
of Exercise of Exercise of Exercise
Options Price Options Price Options Price
(share data in millions)
Options outstanding — beginning of year 387 $ 27.09 350 $ 26.36 344 $ 24.36
Granted 51 30.01 84 26.37 126 23.24
Exercised (35) 14.92 (22) 7.69 (63) 3.11
Cancelled (25) 31.62 (25) 31.75 (57) 32.86
Options outstanding — end of year 378 28.30 387 27.09 350 26.36
Options exercisable — end of year 154 $ 26.74 130 $ 22.59 98 $ 17.49
The following is additional information relating to options for the Option Plans outstanding as of January 30, 2004:
Options Outstanding Options Exercisable
Weighted-
Weighted- Average Weighted-
Number Average Remaining Number Average
of Exercise Contractual of Exercise
Shares Price Life (Years) Shares Price
(share data in millions)
$0.01-$1.49 13 $ 1.03 1.85 13 $ 1.03
$1.50-$14.99 21 $ 7.72 3.41 21 $ 7.72
$15.00-$24.99 92 $ 22.47 7.17 33 $ 21.75
$25.00-$34.99 140 $ 28.14 8.19 29 $ 28.43
$35.00 and over 112 $ 40.10 6.36 58 $ 41.10
378 154
45