AMD 1994 Annual Report Download - page 418

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Sales to unaffiliated customers are based on the company location. Transfers
between geographic areas consist of products and services that are sold at
amounts generally above cost and are consistent with governing tax regulations.
Operating income is total sales less operating expenses. Identifiable assets are
those assets used in each geographic area. Export sales are United States
foreign direct sales to unaffiliated customers primarily in Europe and Asia.
12. EMPLOYEE BENEFIT PLANS
Stock option plans. The company has several stock option plans under which key
employees have been granted incentive (ISOs) and nonqualified (NSOs) stock
options to purchase the company's common stock. Generally, options are
exercisable within four years from the date of grant and expire five to ten
years after the date of grant. ISOs granted under the plans have exercise prices
of not less than 100 percent of the fair market value of the common stock at the
date of grant. Exercise prices of NSOs may not be less than 50 percent of the
fair market value of the common stock at the date of grant. At December 25,
1994, 2,795 employees were eligible and participating in the plans.
The following is a summary of stock option exercises.
- - ------------------------------------------------------------------------------
(Thousands) 1994 1993 1992
---------------------------------
Aggregate exercise price $10,149 $14,029 $13,803
Options exercised 1,589 2,749 3,119
- - ------------------------------------------------------------------------------
A summary of the stock option plans at December 25, 1994 is shown below.
- - --------------------------------------------------------------------------------
(Thousands except per share amounts)
Options:
Outstanding at beginning of year 10,961
Granted 2,789
Canceled (242)
Exercised (1,589)
--------
Outstanding at end of year 11,919
========
Exercisable at beginning of year 4,852
Exercisable at end of year 5,878
Available for grant at beginning of year 963
Available for grant at end of year 2,960
Aggregate exercise price of options outstanding
at end of year $193,000
Average exercise price of options outstanding
at end of year $ 16.19
- - --------------------------------------------------------------------------------
Stock appreciation rights plans. The company maintains three stock
appreciation rights plans under which stock appreciation rights (SARs) either
have been or may be granted to key employees. The number of SARs exercised
plus common stock issued under the stock option plans may not exceed the
number of shares authorized under the stock option plans. SARs may be granted
in tandem with outstanding stock options, in tandem with future stock option
grants or independently of any stock options. Generally, the terms of SARs
granted under the plans are similar to those of options granted under the
stock option plans, including exercise prices, exercise dates and expiration
dates. To date, the company has granted only limited SARs, which become
exercisable only in the event of certain changes in control of the company.
Stock purchase plan. The company has a stock purchase plan that allows
participating employees to purchase, through payroll deductions, shares of
the company's common stock at 85 percent of the fair market value at
specified dates. At December 25, 1994, 6,038 employees were eligible to
participate in the plan and 948,778 common shares remained available for
issuance under the plan. A summary of stock purchased under the plan is shown
below.
- - ------------------------------------------------------------------------------
(Thousands except employee
participants) 1994 1993 1992
-------------------------------
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995