Amgen 2002 Annual Report Download - page 63

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Page 61
AMGEN 2002 ANNUAL REPORT
As of December 31, 2002, the Company had 71.8 mil-
lion shares of common stock available for future grant under
its employee stock option plans, including common stock
available for future grant under employee stock option plans
assumed from Immunex. Stock option information with
respect to all of the Company’s employee stock option plans
is as follows (shares in millions):
Exercise price
Shares Low High Weighted-average
Balance unexercised at December 31, 1999 115.8 $ 0.92 $57.69 $15.88
Granted 13.1 $51.31 $78.00 $67.40
Exercised (28.2) $ 0.92 $72.75 $11.03
Forfeited (2.0) $ 4.48 $74.86 $26.02
Balance unexercised at December 31, 2000 98.7 $ 2.55 $78.00 $23.89
Granted 18.6 $51.51 $74.19 $63.47
Exercised (20.6) $ 2.55 $70.38 $13.12
Forfeited (2.3) $ 5.48 $78.00 $41.43
Balance unexercised at December 31, 2001 94.4 $ 6.19 $78.00 $33.62
Granted 17.3 $31.07 $62.48 $40.61
Assumed from Immunex Corporation
(including 18.9 million vested options) 22.4 $ 1.97 $72.00 $23.66
Exercised (26.2) $ 2.00 $60.36 $15.90
Forfeited (4.9) $ 8.50 $76.44 $52.01
Balance unexercised at December 31, 2002 103.0 $ 1.97 $78.00 $36.25
Options outstanding Options exercisable
Weighted-average
Weighted-average remaining Weighted-average
Price range Shares exercise price contractual life Shares exercise price
$10.00 and under 5.1 $ 6.07 3.7 years 5.1 $ 6.07
Over $10.00 to $15.00 16.5 $13.69 1.6 years 16.5 $13.69
Over $15.00 to $30.00 19.3 $18.44 3.4 years 18.2 $18.54
Over $30.00 to $60.00 36.0 $39.25 5.2 years 14.1 $37.44
Over $60.00 26.1 $65.54 5.1 years 8.5 $66.41
During the years ended December 31, 2002, 2001,
and 2000, the Company issued 0.1 million, 0.2 million, and
0.1 million shares of restricted common stock, respectively.
Fair value disclosures of employee stock options
The exercise price of employee stock option grants is set at
the closing price of the Company’s common stock on the
date of grant and the related number of shares granted is
fixed at that point in time. Therefore, under the principles
of APB No. 25, the Company does not recognize compen-
sation expense associated with the grant of employee stock
options. SFAS No. 123 requires the use of option valuation
models to provide supplemental information regarding
options granted after 1994.
The fair value of the options was estimated at the date
of grant using a Black-Scholes option valuation model with
the following weighted-average assumptions for 2002,
2001, and 2000, respectively: 1) a risk-free interest rate of
3.6%, 4.7%, and 5.9%, 2) a dividend yield of 0%, 0%,
and 0%, 3) a volatility factor of the expected market price
At December 31, 2002, 2001, and 2000, employee
stock options to purchase 62.4 million, 53.4 million, and
55.5 million shares were exercisable at weighted-average
prices of $27.03, $20.81, and $15.35, respectively.
Information regarding employee stock options out-
standing as of December 31, 2002 is as follows (shares in
millions):