Adaptec 2006 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2006 Adaptec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 188

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

Table of Contents
Stock Option Plans
The Company issues its common stock under the provisions of various stock option plans. Stock option awards are granted with an exercise price equal to the
closing market price of the Company’s common stock at the grant date. The options generally expire within five to ten years and vest over four years.
In 2001, the Company simplified its plan structure. The 2001 Stock Option Plan (the “2001 Plan”) was created to replace a number of stock option plans the
Company had assumed in connection with mergers and acquisitions completed prior to 2001. The number of shares available for issuance under the 1994
Incentive Stock Plan (“1994 Plan”) were approved by stockholders. New stock options or other equity incentives may only be issued under the 1994 Plan and the
2001 Plan. In the second quarter of 2006 the Company assumed the stock option plans and all outstanding stock options of Passave as part of the merger
consideration.
Activity under the option plans during the year ended December 31, 2006 was as follows:
Number of Options
Weighted average price per
share
Weighted average
remaining contractual
term per share - Years
Aggregate intrinsic
value per share
Outstanding, December 31, 2005 27,896,299 $ 10.01
Granted 8,977,590 $ 10.10
Assumed on acquisition of Passave 6,431,670 $ 1.38
Exercised (6,674,228) $ 3.43
Cancelled, Forfeited (2,276,278) $ 9.21
Expired (1,359,059) $ 16.36
Outstanding, December 31, 2006 32,995,994 $ 9.55 7.27 $ 0.72
Vested & Expected to Vest, December 31, 2006 31,439,860 $ 9.56 7.14 $ 0.76
Exercisable, December 31, 2006 18,576,917 $ 10.57 6.01 $ 0.74
No adjustment has been recorded for fully vested options that expired during the year ended December 31, 2006. A reversal of less than $0.4 million was
recorded for pre-vesting forfeitures.
The following table summarizes information on options outstanding and exercisable for the combined option plans at December 31, 2006:
85
Source: PMC SIERRA INC, 10-K, March 01, 2007 Powered by Morningstar® Document Research℠