AMD 2003 Annual Report Download - page 47

Table of Contents
statement; through the issuance of securities in a transaction exempt from registration under the Securities Act of 1933; or a combination of one or more of the
foregoing. We believe, that in the event of such requirements, we will be able to access the capital markets on terms and in amounts adequate to meet our
objectives. However, given the possibility of changes in market conditions or other occurrences, there can be no certainty that such funding will be available in
quantities or on terms favorable to us.
Supplementary Stock-Based Incentive Compensation Disclosures
Section I. Option Program Description
Our stock option programs are intended to attract, retain and motivate highly qualified employees. We have several stock option plans under which key
employees have been granted incentive (ISOs) and nonqualified (NSOs) stock options to purchase our common stock. Generally, options vest and become
exercisable over a four year period 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 on the date of grant. Exercise prices of NSOs range from $0.01 to the fair market value of
the common stock on the date of grant.
Section II. General Option Information
The following is a summary of stock option activity for the years ended December 28, 2003 and December 29, 2002:
Year Ended
December 28, 2003
Year Ended
December 29, 2002
Number of
Shares
Weighted-
Average
Exercise
Price
Number of
Shares
Weighted-
Average
Exercise
Price
(Thousands except share price)
Options:
Outstanding at beginning of period 60,408 $ 18.58 52,943 $ 20.44
Granted 5,575 9.46 11,829 5.62
Canceled (22,642) 27.69 (3,413) 20.34
Exercised (2,372) 7.86 (951) 6.23
Outstanding at end of period 40,969 $ 12.92 60,408 $ 18.58
Exercisable at end of period 28,624 $ 13.66 33,807 $ 19.55
Available for grant at beginning of period 13,019 21,146
Available for grant at end of period 29,613 13,019
In-the-money and out-of-the-money stock option information as of December 28, 2003, was as follows:
Exercisable Unexercisable Total
As of End of Quarter Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
(Thousands except share price)
In-the-Money 20,981 $ 9.21 8,933 N/A(3) 29,914 $ 8.99
Out-of-the-Money(1) 7,643 25.88 3,412 N/A(3) 11,055 23.55
Total Options Outstanding 28,624 13.66 12,345 40,969(2) 12.92
(1) Out-of-the-money stock options have an exercise price equal to or above $14.70, the market value of AMD’s common stock, on the last trading day of the
year, December 26, 2003.
(2) Includes 404,344 shares outstanding from treasury stock as non-plan grants.
(3) Weighted average exercise price information is not available.
42
Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004