Garmin 2002 Annual Report Download - page 60

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Employee Stock Purchase Plan
The stockholders also adopted an employee stock purchase plan (ESPP). Up to 1,000,000 shares of common stock have been
reserved for the ESPP. Shares will be offered to employees at a price equal to the lesser of 85% of the fair market value of the
stock on the date of purchase or 85% of the fair market value on the enrollment date. The ESPP is intended to qualify as an
“employee stock purchase plan” under Section 423 of the Internal Revenue Code. During 2002 and 2001, 70,000 and 123,007
shares were purchased under the plan for a total purchase price of $1,265 and $1,464, respectively. No shares were purchased
during 2000. At December 28, 2002, approximately 807,000 shares are available for future issuance.
Note 14. Earnings Per Share
The following table sets forth the computation of basic and diluted net income per share:
Year Ended
December 28, 2002 December 29, 2001 December 30, 2000
Numerator:
Numerator for basic and diluted net income
per share – net income $142,797 $113,448 $105,663
Denominator (in thousands):
Denominator for basic net income per share –
weighted-average common shares 107,774 108,097 100,489
Effect of dilutive securities – employee
stock options (Note 13) 427 350 17
Denominator for diluted net income per share –
adjusted weighted-average common shares 108,201 108,447 100,506
Basic net income per share $1.32 $1.05 $1.05
Diluted net income per share $1.32 $1.05 $1.05
Options to purchase 472,133 shares of common stock at prices ranging from $21.67 to $29.79 per share were outstanding during
2002 but were not included in the computation of diluted earnings per share because the options’ exercise price was greater
than the average market price of the common shares and, therefore, the effect would be antidilutive.
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