IBM 1997 Annual Report Download - page 71

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69
notes to consolidated financial statements
International Business Machines Corporation
and Subsidiary Companies
Stock Option Grants
Stock options granted under the Plans allow the purchase of IBM’s common stock at 100 percent of the market price
on the date of grant and generally expire 10 years from the date of grant. The following table summarizes option
activity of the Plans during 1997, 1996 and 1995:
1997 1996 1995
Wtd. Avg. Wtd. Avg. Wtd. Avg.
Exercise No. of Shares Exercise No. of Shares Exercise No. of Shares
Price under Option Price under Option Price under Option
Balance at January 1 $44 61,435,322 $39 68,565,806 $34 68,126,634
Options granted 71 21,471,228 63 15,359,058 39 12,937,404
Options exercised 42 (19,630,005) 36 (19,302,622) 26 (7,391,578)
Options terminated 56 (1,548,184) 61 (3,186,920) 52 (5,106,654)
____________ ____________________ ____________ ____________________ ___________ ____________________
Balance at December 31 $54 61,728,361 $44 61,435,322 $39 68,565,806
Exercisable at December 31 $38 26,619,548 $41 30,603,845 $46 38,352,820
The shares under option at December 31, 1997, were in the following exercise price ranges:
Options Outstanding Options Currently Exercisable
Wtd. Avg. Wtd. Avg. Wtd. Avg.
No. of Exercise Contractual No. of Exercise
Exercise Price Range Options Price Life (in years) Options Price
$21 – 50 25,762,003 $32 6 20,646,476 $31
$51 – 69 16,880,188 62 7 5,959,624 61
$70 and over 19,086,170 76 9 13,448 74
____________________ ___________________
61,728,361 26,619,548
IBM Employees Stock Purchase Plan
The IBM Employees Stock Purchase Plan (ESPP) enables
substantially all regular employees to purchase full or
fractional shares of IBM common stock through payroll
deductions of up to 10 percent of eligible compensation.
The price an employee pays is 85 percent of the average
market price on the last day of an applicable pay period.
During 1997, 1996 and 1995, employees purchased
4,676,980; 6,461,856 and 8,958,680 shares, all of which
were treasury shares, for which $354 million, $324 million
and $344 million were paid to IBM, respectively.
There were approximately 35.5 million, 40.2 million and
46.6 million reserved unissued shares available for
purchase under the ESPP, as previously approved by
stockholders, at December 31, 1997, 1996 and 1995,
respectively.