AMD 1995 Annual Report Download - page 246

notes
TO CONSOLIDATED FINANCIAL STATEMENTS
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Sales to unaffiliated customers are based on the location of the company's
subsidiary. 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.
NOTE 13 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 31,
1995, 2,940 employees were eligible and participating in the plans.
The following is a summary of stock option exercises:
(Thousands) 95 94 93
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Aggregate exercise price $ 14,770 $ 10,149 $14,029
Options exercised 1,635 1,589 2,749
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A summary of the stock option plans at December 31, 1995 and December 25, 1994
are shown below.
(Thousands except per share amounts) 95 94
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Options:
Outstanding at beginning of year 11,919 10,961
Granted 2,627 2,789
Canceled (386) (242)
Exercised (1,635) (1,589)
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Outstanding at end of year 12,525 11,919
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Exercisable at beginning of year 5,878 4,852
Exercisable at end of year 6,570 5,878
Available for grant at beginning of year 2,960 963
Available for grant at end of year 701 2,960
Aggregate exercise price of options
outstanding at end of year $247,913 $193,000
Average exercise price of options
outstanding at end of year $19.79 $16.19
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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 31, 1995, 6,723 employees were eligible to participate in the
plan and 482,182 common shares remained available for issuance under the plan. A
summary of stock purchased under the plan is shown below.
Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 1996