Intel 2002 Annual Report Download - page 33

1
Number of
Securities
Underlying
Option Grants
Percent of Total
Options
Granted to
Employees
Stock Price Appreciation for Option Term
1
Exercise Price Per Share Expiration Date 5% 10%
2,986,677
1.7
%
$20.23
–
$
30.50
2012
$
50,555,700
$
128,118,100
Represents gains that could accrue for these options, assuming that the market price of Intel common stock appreciates over a period of
10 years at annualized rates of 5% and 10%. If the stock price does not increase above the exercise price, the realized value from these
options would be zero.
Option exercises during 2002 and option values for listed officers as a group as of December 28, 2002 were as follows:
1
Number of Shares Underlying Unexercised
Options at December 28, 2002
Values of Unexercised In-the-Money Options at
December 28, 2002
1
Shares
Acquired on
Exercise
Value Realized
Exercisable
Unexercisable
Exercisable
Unexercisable
544,000
$
17,570,300
8,447,582
9,311,843
$
66,814,500
$
2,881,700
These amounts represent the difference between the exercise price and $16.56, the market price of Intel stock at the end of 2002 for all
in-the-money options held by the listed officers.
Information as of December 28, 2002 regarding equity compensation plans approved and not approved by stockholders is summarized in
the following table (shares in millions):
1
Plan Category
(A)
Number of Shares to be Issued
Upon Exercise of Outstanding
Options
(B)
Weighted Average Exercise
Price of Outstanding Options
(C)
Number of Shares Remaining
Available for Future Issuance
Under Equity Compensation
Plans (Excluding Shares
Reflected in Column A)
Equity compensation plans approved by
shareholders
204.4
$
14.33
260.0
1
Equity compensation plans not approved by
shareholders
625.3
$
29.15
771.5
2
Total
829.7
3
$
25.50
1,031.5
Includes 150.3 million shares available for future issuance under our 1984 Stock Option Plan, as amended, generally used for grants to
officers and directors. Also includes 109.7 million shares available under our 1976 Employee Stock Participation Plan.
2
Shares available under our 1997 Stock Option Plan, used for grants to employees other than officers and directors. The Board of
Directors has adopted a policy that any new option plans, and any material amendments to existing plans, will be submitted for
stockholder approval.
3
Total excludes 15.7 million shares issuable under outstanding options, with a weighted average exercise price of $15.49, originally
granted under plans we assumed in connection with acquisitions. We do not intend to grant further options under these plans.
39
Outlook
In general, as we look ahead to the rest of 2003, the outlook continues to be uncertain, and we anticipate a year that will be largely driven
by the pace of recovery in our industry and in the economy. We are planning for seasonal performance, but we have the flexibility to respond
quickly to an improvement in business conditions, with products, manufacturing capacity and people in place. Although it is difficult to predict
product demand in 2003, we expect continued growth in the total number of computers using the Intel Pentium 4 processor based on the Intel
NetBurst microarchitecture. Demand for our flash memory products is uncertain in the highly competitive cellular handset market segment.