EMC 2003 Annual Report Download - page 65

13.92 - 20.87 14,160 7.2 16.96 7,373 16.95
20.88 - 31.31 2,489 5.0 26.78 2,298 26.81
31.32 - 46.97 28,835 6.7 35.10 13,902 34.16
46.98 - 70.46 6,552 6.1 60.01 3,904 59.97
70.47 - 90.00 16,093 6.7 83.43 8,978 84.06
Totals 254,574 7.4 $ 18.56 111,331 $ 20.31
There were 111.3 million, 51.6 million and 31.0 million outstanding options that were exercisable at December 31, 2003, 2002 and 2001, respectively.
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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Employee Stock Purchase Plan
Under our 1989 Employee Stock Purchase Plan (the "1989 Plan"), eligible employees may purchase shares of Common Stock, through payroll
deductions, at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. In May 2003,
our stockholders approved an amendment to the 1989 Plan to increase the number of shares available for grant under the 1989 Plan to 73.0 million shares
from 58.0 million shares. Options to purchase shares are granted twice yearly, on January 1 and July 1, and are exercisable on the succeeding June 30 or
December 31. Grants for the last three years are as follows (shares in thousands):
2003 2002 2001
Shares 10,155 11,012 5,909
Weighted average exercise price $ 6.69 $ 5.81 $15.72
Weighted average fair value $ 2.40 $ 2.09 $ 6.04
O. Related Party Transactions
We have retained a company owned by the brother and uncle of members of our Board of Directors as a broker to provide various forms of corporate
insurance. We paid such company approximately $8,000, $0.6 million and $1.6 million in 2003, 2002 and 2001, respectively. Such amounts include broker's
fees of $75,000 and $35,000 in 2002 and 2001, respectively.
In 2003, 2002 and 2001, we leased certain real estate from a company owned by a member of our Board of Directors and such director's siblings, for
which payments aggregated $2.5 million, $2.2 million and $2.4 million, respectively. Such leases were assumed by us as a result of our acquisition of Data
General in 1999.
We purchased from two companies, upgrades to and licenses to, software products, for which payments aggregated approximately $0.3 million and
$0.1 million in 2003 and 2002, respectively. A member of our Board of Directors is Chairman of the Board of Directors of one of the companies and is the
managing partner and general partner in a limited partnership which is currently a stockholder of both such companies.
We believe that the terms of each of these arrangements described above were fair and not less favorable to us than could have been obtained from
unaffiliated parties.
P. Risks and Uncertainties
Our future results of operations involve a number of risks and uncertainties. Factors that could affect our future operating results and cause actual results
to vary materially from expectations include, but are not limited to, adverse changes in general economic or market conditions; delays or reductions in
information technology spending; risks associated with strategic investments and acquisitions; competitive factors, including but not limited to pricing
pressures; the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues;
component quality and availability; the transition to new products, the uncertainty of customer acceptance of new product offerings, and rapid technological
and market change; insufficient, excess or obsolete inventory; war or acts of terrorism; the ability to attract and retain highly qualified employees; fluctuating
currency exchange rates; risks associated with litigation; and other one-time events and other important factors disclosed previously and from time to time in
our filings with the SEC.
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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Q. Segment Information
We operate in the following segments: information storage products, information storage services, Documentum products and services, LEGATO
products and services and other businesses. The following table presents the revenue components for information storage products (table in thousands):
2003 2002 2001
Information storage systems $3,314,686 $2,985,300 $4,307,244