AMD 2002 Annual Report Download - page 72

Table of Contents
The following table summarizes information about options outstanding as of December 29, 2002:
Options outstanding Options exercisable
Range of exercise prices Number of shares
Weighted-average remaining
contractual life (years)
Weighted-average
exercise price Number of shares
Weighted-average
exercise price
(Shares in thousands)
$ 0.01 – $ 8.46 15,291 6.89 $ 6.98 7,763 $ 7.26
$ 8.47 – $13.70 15,778 7.36 10.83 9,398 10.47
$13.75 – $26.90 15,476 7.74 19.13 7,693 19.46
$27.20 – $45.91 13,863 7.45 39.57 8,953 39.80
$ 0.01 – $45.91 60,408 7.36 $ 18.58 33,807 $ 19.55
Stock Purchase Plan. The Company has an employee stock purchase plan (ESPP) that allows eligible and participating employees to purchase, through
payroll deductions, shares of the Company’s common stock at 85 percent of the lower of the fair market value on the first or the last business day of the three
month offering period. As of December 29, 2002, 3,168,730 common shares remained available for issuance under the plan. A summary of stock purchased
under the plan for the specified fiscal years is shown below:
2002 2001 2000
(Thousands)
Aggregate purchase price $ 23,488 $ 16,816 $ 12,388
Shares purchased 3,177 1,220 815
The weighted-average fair value of shares purchased under the Company’s employee stock purchase plan during 2002, 2001 and 2000 were $2.26, $3.82
and $5.54 per share, respectively.
Stock Appreciation Rights. The Company granted stock appreciation rights (SARs) to key employees under the 1992 stock incentive plan. The 1992 plan
expired by its terms in 2001 and the last SARs were granted in 1991. Generally, the terms of SARs granted under the plan were similar to those of options
granted under the stock incentive plans, including exercise prices, exercise dates and expiration dates. The Company granted only limited SARs, which become
exercisable in the event of certain changes in control of AMD.
Restricted Stock Awards. In 1998, the Company adopted the 1998 stock incentive plan under which the Company was authorized to issue two million
shares of common stock to employees who are not covered by Section 16 of the Securities Exchange Act of 1934, as amended, subject to terms and conditions
determined at the discretion of the Company’s Board of Directors. To date, the Company has canceled agreements covering 40,791 shares without issuance and
the Company has issued 370,524 shares pursuant to prior agreements. As of December 29, 2002, agreements covering 49,850 shares were outstanding. Activity
under this plan is included in the accompanying tables summarizing activity under the Company’s employee stock plans.
Shares Reserved for Issuance. The Company had a total of approximately 76,596,127 shares of common stock reserved as of December 29, 2002 for
issuance under employee stock option plans and the ESPP, including restricted stock awards.
Stock-Based Compensation—Pro Forma Disclosures. For pro forma disclosure purposes only, the Company estimates the fair value of its stock-based
awards to employees using a Black-Scholes option pricing model. The Black-Scholes model was developed for use in estimating fair value of traded options that
have no vesting restrictions and are fully transferable. In addition, the Black-Scholes model requires the input of highly subjective assumptions including
expected stock price volatility. Because our stock-based awards to employees have characteristics significantly differently from those of traded options, and
because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not
necessarily provide a reliable single measure of the fair value of our stock-based awards to employees. The
66
Source: ADVANCED MICRO DEVIC, 10-K, March 14, 2003