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39’04฀Annual฀Report
Note฀F—Interest฀Expense฀
Net฀interest฀expense฀for฀each฀of฀the฀last฀three฀fiscal฀years฀consisted฀of฀the฀following:
฀ Year฀Ended
(in฀thousands)
August฀28,฀
2004 ฀
August฀30,฀
2003 ฀
August฀31,฀
2002
Interest฀expense $93,831 $86,635 $80,466
Interest฀income (214) (1,054) (169)
Capitalized฀interest (813) ฀ (791) ฀ (437)
$92,804 ฀ $84,790 ฀ $79,860
Note฀G—Stock฀Repurchase฀Program฀
As฀of฀August฀28,฀2004,฀the฀Board฀of฀Directors฀had฀authorized฀the฀Company฀to฀repurchase฀up฀to฀$3.9฀billion฀of฀common฀stock฀in฀the฀open฀
market.฀Such฀authorization฀includes฀the฀additional฀$600฀million฀that฀was฀approved฀by฀the฀Board฀of฀Directors฀on฀March฀17,฀2004.฀From฀
January฀1998฀to฀August฀28,฀2004,฀the฀Company฀has฀repurchased฀a฀total฀of฀82.2฀million฀shares฀at฀an฀aggregate฀cost฀of฀$3.675฀billion.฀
Note฀H—Employee฀Stock฀Plans฀
The฀Company฀has฀granted฀options฀to฀purchase฀common฀stock฀to฀some฀of฀its฀employees฀and฀directors฀under฀various฀plans฀at฀prices฀equal฀to฀
the฀market฀value฀of฀the฀stock฀on฀the฀dates฀the฀options฀were฀granted.฀Options฀become฀exercisable฀in฀a฀one-฀to฀seven-year฀period,฀and฀expire฀
ten฀years฀after฀the฀grant฀date.฀See฀Note฀A฀for฀additional฀information฀regarding฀the฀Company’s฀stock฀option฀plans.
A฀summary฀of฀outstanding฀stock฀options฀is฀as฀follows:฀
฀
Number฀
of฀Shares ฀
Weighted฀
Average฀
Exercise฀
Price
Outstanding฀August฀25,฀2001 8,456,177 $26.33
฀ Granted 1,134,064 46.88
฀ Exercised (2,621,247) 25.26
฀ Canceled (684,435)฀ 29.50
Outstanding฀August฀31,฀2002 6,284,559 30.09
฀ Granted 1,475,922 71.55
฀ Exercised (1,763,940) 27.79
฀ Canceled (714,840)฀ 32.00
Outstanding฀August฀30,฀2003 5,281,701 42.14
฀ Granted 1,161,597 ฀88.99
฀ Exercised (1,118,797) 32.16
฀ Canceled (312,795)฀ 53.92
Outstanding฀August฀28,฀2004 5,011,706 ฀ $ 54.42
The฀following฀table฀summarizes฀information฀about฀stock฀options฀outstanding฀at฀August฀28,฀2004:
฀ Options฀Outstanding Options฀Exercisable
Range฀of฀Exercise฀Prices
Number฀
Outstanding ฀
Weighted฀Average฀
Exercise฀Price ฀
Weighted฀Average฀
Remaining฀
Contractual฀Life฀
(in฀Years) ฀
Number฀
Exercisable ฀
Weighted฀Average฀
Exercise฀Price
$฀ 4.86–$26.14 1,239,740 $24.49 5.12 721,447 $24.49
$26.38–$43.90 1,291,955 36.38 5.50 671,285 34.47
$45.53–$69.71 127,082 62.86 7.36 ฀66,750 61.10
$71.12–$71.12 1,151,397 71.12 8.03 233,610 71.12
$71.18–$91.34 1,201,532 ฀ 87.82 ฀ 8.97 ฀฀ 24,600 ฀ 77.99
$฀ 4.86–$91.34 5,011,706 ฀ $54.42 ฀ 6.87 ฀ 1,717,692 ฀ $36.92