Creative 2002 Annual Report Download - page 38

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36
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 – EMPLOYEE SHARE PURCHASE AND STOCK OPTION PLANS (Cont’d)
Effective April 2000, unvested stock options to purchase 0.2 million shares of Creative’s ordinary stock granted under the
New Plan and 1999 Scheme to employees of a subsidiary were canceled in exchange for the right to receive options
granted by the subsidiary. The employees are allowed to retain outstanding options vested on March 31, 2000 until March
31, 2001 at which time unexercised options were canceled. In May 2000, the subsidiary adopted a separate stock option
plan and employees were then granted options under this plan. See “Subsidiary Stock Option Plan” below for additional
information.
In fiscal 2002, Creative granted 7.1 million options under the 1999 Scheme at a weighted average exercise price of $4.57.
2.9 million options granted in fiscal 2002 are below fair market value, resulting in a deferred share compensation of $0.8
million being amortized over the vesting period of the underlying options. The 7.1 million options that were granted in
fiscal 2002 included 1.6 million Creative’s options that were granted to assume 3Dlabs’ outstanding employee stock
options. (See Note 15)
Creative Employee Stock Option Plans
A summary of options granted to employees and non-employee directors under Creative’s stock option plans is presented
below:
Options Outstanding
Number of Shares Weighted Average
(’000) Exercise Price ($)
Balance as of June 30, 1999 7,117 9.14
Granted – at fair market value 697 11.81
– below fair market value 4,346 9.14
Exercised (2,214) 7.17
Canceled (1,052) 12.54
Balance as of June 30, 2000 8,894 9.44
Granted – at fair market value – –
– below fair market value – –
Exercised (928) 7.31
Canceled (1,185) 13.49
Balance as of June 30, 2001 6,781 9.01
Granted – at fair market value 2,509 4.72
– below fair market value 2,931 4.80
– pursuant to the acquisition of 3Dlabs (see Note 15) 1,641 3.93
Exercised (1,070) 6.45
Canceled (913) 9.18
Balance as of June 30, 2002 11,879 6.56
The total number of options exercisable at June 30, 2002, 2001 and 2000 under the New Plan and 1999 Scheme were
4,031,000, 3,843,000 and 2,594,000, respectively.