Symantec 2002 Annual Report Download - page 95

SYMANTEC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
to stockholders' equity and was amortized into compensation expense on a straight-line basis over the vesting
term. As of March 31, 2002, there were 200,000 shares fully vested and outstanding.
Employee Stock Purchase Plans
In September 1998, our stockholders approved the 1998 Employee Stock Purchase Plan and reserved a
total of 1.0 million shares of common stock for issuance. The plan was subsequently amended by our
stockholders on September 15, 1999, to increase the shares available for issuance by approximately 1.5 million
shares and to add an ""evergreen'' provision whereby the number of shares available for issuance increases
automatically on January 1 of each year (beginning in 2000) by 1% of our outstanding shares of common
stock on each immediately preceding December 31 during the term of the plan, provided that the aggregate
number of shares issued over the term of the plan does not exceed 16.0 million shares. On January 1, 2002,
2001 and 2000, the number of shares available for issuance automatically increased by approximately
1.4 million, 1.5 million and 1.2 million shares, respectively, for a total of approximately 6.6 million shares of
common stock reserved under the plan. Subject to certain limitations, our employees may purchase, through
payroll deductions of 2% to 10% of their compensation, shares of common stock at a price per share that is the
lesser of 85% of the fair market value as of the beginning of the oÅering period or the end of the purchase
period. As of March 31, 2002, approximately 1.5 million shares had been issued and 5.1 million shares remain
available under the plan.
Stock Award Plans
In September 2000, our stockholders approved the 2000 Directors Equity Incentive Plan and reserved
50,000 shares of common stock for issuance under this plan. The purpose of this plan is to provide the
members of the Board of Directors with an opportunity to receive common stock for all or a portion of the
retainer payable to each director for serving as a member. Each director may elect to receive 50% to 100% of
the retainer to be paid in the form of stock. As of March 31, 2002, a total of approximately 14,000 shares had
been issued under this plan.
In January 1995, the Board of Directors approved the terms of the 1994 Patent Incentive Plan. The
purpose of this plan is to increase awareness of the importance of patents to our business and to provide
employees with incentives to pursue patent protection for new technologies that may be valuable to us. Our
executive oÇcers are not eligible for awards under the 1994 Patent Incentive Plan, and no employee is eligible
to receive more than 100,000 shares of common stock at any time during the term of the plan. The Board of
Directors reserved 800,000 shares of common stock for issuance under this plan. As of March 31, 2002, a total
of approximately 58,000 shares had been issued under this plan.
Stock awards issued under these stock award plans are recorded as compensation expense.
Stock Option Plans
We maintain stock option plans pursuant to which an aggregate total of approximately 76.6 million shares
of common stock have been reserved for issuance as incentive and nonqualiÑed stock options to employees,
oÇcers, directors, consultants, independent contractors and advisors to us, or of any parent, subsidiary or
aÇliate of Symantec as the Board of Directors or committee may determine. The purpose of these plans is to
attract, retain and motivate eligible persons whose present and potential contributions are important to our
success by oÅering them an opportunity to participate in our future performance through awards of stock
options and stock bonuses. Under the terms of these plans, the option exercise price may not be less than 100%
of the fair market value on the date of grant and the options have a maximum term of ten years and generally
vest over a four-year period.
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