Plantronics 2000 Annual Report Download - page 35

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N OTES TO consolidated financial statements
WEIGHTED
AVERAGE
REMAINING
CONTRACTUAL LIFE
RANGE OF
EXERCISE PRICE
NUM BER
EXERCISABLE
AS OF
MARCH 31 , 2 0 0 0
NUM BER
OUTSTANDING
AS OF
MARCH 31 , 2 0 0 0
WEIGHTED
AVERAGE
EXERCISE PRICE
WEIGHTED
AVERAGE
EXERCISE PRICE
OPTIONS EXERCISABLE
OPTIONS OUTSTANDING
Significant option groups outstanding at March 31, 2000 and related weighted average prices and lives are
as follows:
$ 0.90 - $ 2.74 282,289 3.77 $ 2.53 282,289 $ 2.53
3.13 - 18.44 440,889 5.73 15.23 392,389 14.83
18.63 - 26.78 257,096 6.99 21.46 162,413 21.38
34.50 - 60.00 691,057 8.44 47.03 171,219 39.67
61.13 - 92.63 961,662 9.17 66.76 57,147 61.57
$ 0.90 - $92.63 2,632,993 7.61 $41.64 1,065,457 $19.07
FAI R VALUE DISCLOSURES
All options in fiscal 1998, 1999 and 2000 were granted at an exercise price equal to the fair market value
of Plantronics’Common Stock at the date of grant.
The fair value of options at date of grant was estimated using the Black-Scholes model.The following
assumptions were used for 1998: dividend yield of 0%, an expected life of 5 years, expected volatility of
28% and risk free interest rate of 5.6%. For 1999 the assumptions were: dividend yield of 0%, an expected
life of 5.6 years, expected volatility of 39% and risk free interest rate of 5.3%. For 2000 the assumptions
were: dividend yield of 0%, an expected life of 6 years, expected volatility of 42% and a weighted average
risk free interest rate of 5.9%. Based upon those assumptions, the weighted average fair value at date of
grant for options granted during 1998, 1999 and 2000 were $9.79, $25.25 and $32.66 per share, respectively.
Volatility is a measure of the amount by which a price has fluctuated over an historical period.The higher
the volatility, the more the returns on the stock can be expected to vary.The risk free interest rate is the
rate on a U.S.Treasury bill or bond that approximates the expected life of the option.
Had compensation expense for Plantronics’stock-based compensation plans been determined based on the
methods prescribed by SFAS No. 123, our net income and net income per share would have been as follows:
FISCAL YEAR ENDED M ARCH 3 1 ,
(IN TH OUSANDS, EXCEPT PER SHARE AM OUNTS) 1 9 9 8 1 9 9 9 2 0 0 0
Net income:
As reported $39,189 $54,204 $64,517
Pro forma $37,381 $51,771 $56,879
Net income per share:
As reported $ 2.15 $ 2.96 $ 3.65
Pro forma $ 2.05 $ 2.83 $ 3.22
PLANTRONICS ANN UAL REPORT 2 0 0 0 page 33