AMD 2002 Annual Report Download - page 73

Table of Contents
fair value of our stock-based awards to employees was estimated assuming no expected dividends and the following weighted-average assumptions:
Options ESPP
2002 2001 2000 2002 2001 2000
Expected life (years) 3.17 3.02 4.27 0.25 0.25 0.25
Expected stock price volatility 84.68% 83.43% 72.10% 99.00% 85.03% 87.95%
Risk-free interest rate 2.93% 3.57% 6.55% 1.87% 2.58% 5.95%
The Company granted a total of 11,527,551 stock-based awards during 2002 with exercise prices equal to the market price of the stock on the grant date.
The weighted-average exercise price and weighted-average fair value of these awards were $9.86 and $5.48, respectively. The Company granted a total of
114,980 stock-based awards during 2002 with exercise prices greater than the market price of the stock on the grant date. The weighted-average exercise price
and weighted-average fair value of these awards were $12.73 and $5.89, respectively. The Company granted a total of 186,157 stock-based awards during 2002
with exercise prices less than the market price of the stock on the grant date. The weighted-average exercise price and weighted-average fair value of these
awards were $0.08 and $13.70, respectively.
The Company granted a total of 13,870,950 stock-based awards during 2001 with exercise prices equal to the market price of the stock on the grant date.
The weighted-average exercise price and weighted-average fair value of these awards were $16.93 and $9.27, respectively. The Company granted a total of
157,476 stock-based awards during 2001 with exercise prices greater than the market price of the stock on the grant date. The weighted-average exercise price
and weighted-average fair value of these awards were $21.21 and $0.11, respectively. The Company granted a total of 59,115 stock-based awards during 2001
with exercise prices less than the market price of the stock on the grant date. The weighted-average exercise price and weighted-average exercise price and
weighted-average fair value of these awards were $1.08 and $22.54, respectively. The Company granted a total of 20,702,856 stock-based awards during 2000
with exercise prices equal to the market price of the stock on the grant date. The weighted-average exercise price and weighted-average fair value of these awards
were $35.12 and $21.00, respectively. The Company granted a total 25,800 stock-based awards during 2000 with exercise prices greater than the market price of
the stock on the grant date. The weighted-average exercise price and weighted-average fair value of these awards were $26.92 and $0.02, respectively. The
Company granted a total of 315,510 stock-based awards during 2000 with exercise prices less than the market price of the stock on the grant date. The
weighted-average exercise price and weighted-average fair value of these awards were $4.92 and $31.25, respectively.
NOTE 11: Other Employee Benefit Plans
Profit Sharing Program. The Company has a profit sharing program to which the Board of Directors may authorize quarterly contributions. There was
no profit sharing expense in 2002. Profit sharing expense was approximately $25 million in 2001 and $103 million in 2000.
Retirement Savings Plan. The Company has a retirement savings plan, commonly known as a 401(k) plan, that allows participating United States
employees to contribute from one percent to 15 percent of their pre-tax salary subject to Internal Revenue Service limits. The Company matches employee
contributions at a rate of 50 cents on each dollar of the first six percent of participants’ contributions, to a maximum of three percent of eligible compensation.
The contributions to the 401(k) plan were approximately $14 million in 2002, $11 million in 2001, and $10 million in 2000.
NOTE 12: Commitments and Guarantees
The Company leases certain of its facilities under agreements that expire at various dates through 2018. The Company also leases certain of its
manufacturing and office equipment for terms ranging from one to five years. Rent expense was approximately $65 million, $62 million and $48 million in 2002,
2001 and 2000, respectively.
67
Source: ADVANCED MICRO DEVIC, 10-K, March 14, 2003