Symantec 2006 Annual Report Download - page 106

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements Ì (Continued)
equal to the lesser of 85% of the fair market value as of the beginning of the two-year offering period or the
end of the six-month purchase period. The Board of Directors eliminated the two-year offering period in
March 2005, effective July 1, 2005. Under the ESPP, 3.9 million, 3.2 million, and 2.9 million shares were
issued during fiscal 2006, 2005, and 2004, respectively, representing $59 million, $32 million, and $23 million
in contributions, respectively. As of March 31, 2006, a total of 20.2 million shares had been issued under this
plan.
Stock award plan
2000 Director Equity Incentive Plan
In September 2000, our stockholders approved the 2000 Director Equity Incentive Plan and reserved
50,000 shares of common stock for issuance thereunder. In September 2004, stockholders increased the
number of shares of stock that may be issued by 50,000. 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, 2006, a total of 58,468 shares had been issued under this plan and
41,532 shares remained available for future issuance.
Stock option plans
We maintain stock option plans pursuant to which the Board of Directors, or a committee of the Board of
Directors, may grant incentive and nonqualified stock options to employees, officers, directors, consultants,
independent contractors, and advisors to us, or of any parent, subsidiary, or affiliate of Symantec. The purpose
of these plans is to attract, retain, and motivate eligible persons whose present and potential contributions are
important to our success by offering 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 options generally vest over a four-year
period. Options granted prior to October 2005 generally have a maximum term of ten years and options
granted thereafter generally have a maximum term of seven years.
2004 and 1996 Equity Incentive Plans
In September 2004, stockholders approved the terms of the 2004 Equity Incentive Plan and reserved
18.0 million shares for issuance thereunder. An additional 9.5 million shares were transferred to this plan from
the 1996 Equity Incentive Plan upon that plan's expiration in March 2006. Under the 2004 Equity Incentive
Plan, we may grant options, stock appreciation rights, RSUs, or restricted stock awards to employees, officers,
directors, consultants, independent contractors, and advisors to us, or of any parent, subsidiary, or affiliate of
Symantec as the Board of Directors or committee may determine. A maximum of 10% of the shares reserved
under the plan may be granted in the form of restricted stock awards. Under the terms of this plan, the
Compensation Committee determines whether an option will be an incentive stock option or a non-qualified
stock option. This plan superseded the 1996 Equity Incentive Plan upon its expiration. As of March 31, 2006,
25.8 million shares remain available for future grant.
During fiscal 2006, we granted an aggregate of 200,000 RSUs to two officers. The market value of the
underlying common stock on the dates of grant was $3 million, which was recorded in Deferred stock-based
compensation within Stockholders' equity in the Consolidated Balance Sheets in fiscal 2006. The deferred
stock-based compensation is being amortized over the three to four-year vesting periods.
On October 20, 2004, we issued 200,000 restricted shares of common stock to our then-current Chief
Financial Officer, at a purchase price of $1,000 (representing the aggregate par value at the time of issuance),
vesting 50% at each anniversary date. The market value of the common stock on the date of grant, less the
purchase price, was $6 million and was recorded in Deferred stock-based compensation within Stockholders'
equity in the Consolidated Balance Sheets in fiscal 2005. Upon the retirement of the former Chief Financial
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