Intel 1999 Annual Report Download - page 45

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Employee benefit plans
Stock option plans. Intel has a stock option plan under which officers, key employees and non-employee directors may be granted options to
purchase shares of the company's authorized but unissued common stock. The company also has a stock option plan under which stock options
may be granted to employees other than officers and directors. The company's Executive Long-Term Stock Option Plan, under which certain
key employees, including officers, have been granted stock options, terminated in September 1998. Although this termination will not affect
options granted prior to this date, no further grants may be made under this plan. Under all of the plans, the option exercise price is equal to the
fair market value of Intel common stock at the date of grant. During 1999, Intel also assumed the stock option plans and the outstanding
options of certain acquired companies. No additional options will be granted under these assumed plans.
Options granted by Intel currently expire no later than 10 years from the grant date and generally vest within 5 years. Proceeds received by the
company from exercises are credited to common stock and capital in excess of par value. Additional information with respect to stock option
plan activity was as follows:
The range of option exercise prices for options outstanding at December 25, 1999 was $0.15 to $84.97. The range of exercise prices for options
is wide due primarily to the increasing price of the company's stock over the period in which the option grants were awarded, in addition to the
impact of assumed options of acquired companies that had experienced even greater price appreciation.
The following tables summarize information about options outstanding at December 25, 1999:
Outstanding options
---------------------------
Weighted
Share average
available Number exercise
(Shares in millions) for options of shares price
---------------------------------------------------------------------------------------
DECEMBER 28, 1996 130.6 337.8 $ 7.49
Additional shares reserved 260.0 -- --
Grants (63.0) 63.0 $36.23
Exercises -- (47.2) $ 3.06
Cancellations 8.8 (8.8) $16.38
----- -----
DECEMBER 27, 1997 336.4 344.8 $13.12
Grants (48.0) 48.0 $38.35
Exercises -- (63.0) $ 4.59
Cancellations 17.3 (17.3) $23.64
Lapsed under terminated plans (38.5) -- --
------ -----
DECEMBER 26, 1998 267.2 312.5 $18.13
Grants (40.6) 40.6 $63.91
Options assumed in acquisitions -- 12.8 $25.74
Exercises -- (48.0) $ 6.64
Cancellations 12.3 (12.3) $32.85
----- ------
DECEMBER 25, 1999 238.9 305.6 $25.73
====== ======
Options exercisable at:
December 27, 1997 115.2 $ 3.66
December 26, 1998 103.8 $ 6.11
December 25, 1999 103.2 $ 9.42
Outstanding options
------------------------------------------------------------------
Weighted
Number of average Weighted
shares contractual average
(in life exercise
Range of exercise prices millions) (in years) price
-----------------------------------------------------------------------------------------------------
$0.15-$7.58 59.6 2.4 $ 4.28
$8.66-$15.09 62.9 4.8 $10.46
$15.12-$37.45 91.4 6.7 $25.61
$37.47-$84.97 91.7 8.6 $50.28
-----------
Total 305.6 6.0 $25.73
===========
Exercisable options
----------------------------
Number of Weighted
shares average
(in exercise
Range of exercise prices millions) price