Intel 2005 Annual Report Download - page 46

Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
Options granted to listed officers as a group during fiscal 2005 were as follows:
Option exercises during 2005 and option values for listed officers as a group as of December 31, 2005 were as follows:
Information as of December 31, 2005 regarding equity compensation plans approved and not approved by stockholders is summarized in the following
table (shares in millions):
1997 Stock Option Plan
The 1997 Stock Option Plan (the 1997 Plan) provided for the grant of stock options to employees other than officers and directors. This plan, which
was not approved by stockholders, was terminated as to future grants when the 2004 Plan was approved by the stockholders in May 2004. The 1997
Plan is administered by the Compensation Committee of the Board of Directors, which has the power to determine matters relating to outstanding
option awards under the plan, including conditions of vesting and exercisability. Options granted under the 1997 Plan expire no later than 10 years
from the grant date. Options granted prior to 2003 under this plan generally vest in five years, and options granted under this plan in 2003 and 2004
generally vest in increments over four or five years from the date of grant. Certain grants to key employees have delayed vesting generally beginning
six years from the date of grant.
42
Number of
Securities
Percent of Total
Grant Date
Underlying
Options Granted
Exercise Price
Present
Option Grants
to Employees
Per Share
Expiration Date
Value
1
1,675,000
1.4
%
$
22.63
–
$
23.16
2012
–
2015
$
10,553,100
1
Represents the estimated present value of stock options at the date of grant, calculated using the Black
-Scholes option pricing model based on
the following assumptions: volatility of 0.27, expected life of 5.5 years, risk
-
free interest rate of 4.0% and dividend yield of 1.4%.
Number of Shares Underlying Unexercised
Values of Unexercised In
-
the
-
Money
Options at December 31, 2005
Options at December 31, 2005
1
Shares Acquired
on Exercise
Value Realized
Exercisable
Unexercisable
Exercisable
Unexercisable
1,168,000
$21,037,500
8,517,800
8,600,100
$48,498,800
$24,554,000
1
These amounts represent the difference between the exercise price and $24.96, the closing price of Intel stock on December 30, 2005, as
reported on The NASDAQ Stock Market*, for all
in
-
the
-
money options held by listed officers.
(C)
Number of Shares
Remaining Available
for Future Issuance
(A)
(B)
Under Equity
Number of Shares to
Weighted Average
Incentive Plans
Be Issued Upon
Exercise Price of
(Excluding Shares
Exercise of
Outstanding
Reflected in
Plan Category
Outstanding Options
Options
Column A)
Equity incentive plans approved by stockholders
223.3
$
22.58
284.9
1
Equity incentive plans not approved by
stockholders
2
671.6
$
28.17
—
Total
894.9
3
$
26.77
284.9
1
Includes 47.9 million shares available under our 1976 Employee Stock Participation Plan.
2
Consists of shares available under our 1997 Stock Option Plan, which was not required to be approved by stockholders. The 1997 Stock Option
Plan was terminated as to future grants when the 2004 Plan was approved by the stockholders in May 2004.
3
Total excludes 5.0 million shares issuable under outstanding options, with a weighted average exercise price of $16.15, originally granted under
plans that we assumed in connection with acquisitions.