Intel 1998 Annual Report Download - page 52

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price volatility. Because the Company's options have characteristics significantly different from those of traded options, and because changes in
the subjective input assumptions can materially affect the fair value estimate, in the opinion of management, the existing models do not
necessarily provide a reliable single measure of the fair value of its options. The weighted average estimated fair value of employee stock
options granted during 1998, 1997 and 1996 was $17.91, $17.67 and $8.17 per share, respectively. The weighted average estimated fair value
of shares granted under the Stock Participation Plan during 1998, 1997 and 1996 was $10.92, $11.04 and $4.05, respectively.
For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options' vesting periods. The
Company's pro forma information follows (in millions except for earnings per share information):
1998 1997 1996
-------------------------------------------------------------------------------------------
Pro forma net income $5,755 $6,735 $5,046
Pro forma basic earnings per share $ 1.73 $ 2.06 $ 1.53
Pro forma diluted earnings per share $ 1.66 $ 1.88 $ 1.42