AMD 2004 Annual Report Download - page 113

Table of Contents
The following table summarizes information about options outstanding as of December 26, 2004:
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 – $ 9.56 14,609 5.41 $ 7.57 11,511 $ 7.73
$ 9.57 – $ 14.64 15,842 7.21 12.88 6,153 12.47
$14.65 – $ 15.50 14,653 6.50 14.98 8,063 14.87
$15.55 – $ 45.50 8,580 6.03 22.69 6,523 24.03
$ 0.01 – $ 45.50 53,684 6.34 $ 13.58 32,250 $ 13.72
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 26, 2004, 4,603,182 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:
2004 2003 2002
(in thousands)
Aggregate purchase price $ 24,345 $ 17,060 $ 23,488
Shares purchased 2,151 3,414 3,177
The weighted-average fair value of rights granted under the Company’s ESPP during 2004, 2003 and 2002 were $2.66, $4.86 and $2.26 per share.
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. As of December 26, 2004, the Company canceled agreements covering 48,291 shares without
issuance and the Company had issued 370,524 shares pursuant to prior agreements. As of December 26, 2004, there are no awards outstanding and no shares
available for future grants. Activity under this plan is included in the accompanying tables summarizing activity under the Company’s employee stock plans.
Under its 2004 Plan, the Company is authorized to issue nine million shares of common stock to employees as restricted stock or as stock options with an
exercise price of no less than 85% of fair market value on the date of grant. As of December 26, 2004, the Company issued 43,000 shares of restricted stock
under this plan. Compensation expense recognized for these shares is not significant.
Shares Reserved for Issuance. The Company had a total of approximately 28,504,077 shares of common stock reserved as of December 26, 2004 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 different 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
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005