Intel 2001 Annual Report Download - page 54

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as follows:
In March 2001, a supplemental stock grant was given to employees who had been previously granted options with an exercise price above $30 per share. These additional grants were
made in order to retain employees due to competitive market conditions and a decline in the company's stock price. The 2001 supplemental grants vest ratably over a two-year period from
the date of grant.
In October 2001, the company granted merit-based options that would have been granted in 2002 in order to enhance the potential long-term retention value of these stock options. The
company intends to reduce merit grants in 2002 by the shares in this early grant program. The 2002 merit grant vests in 2007, on about the same date it would vest if granted in 2002.
The range of option exercise prices for options outstanding at December 29, 2001 was $0.01 to $87.90. The range of exercise prices for options is wide, primarily due to the impact of
assumed options of acquired companies that had experienced significant price fluctuations.
The following tables summarize information about options outstanding at December 29, 2001:
Outstanding options
(Shares in millions)
Shares
available for
options
Number of
shares
Weighted average
exercise price
December 26, 1998
534.4
625.0
$
9.07
Grants
(81.2
)
81.2
$
31.96
Options assumed in acquisitions
—
25.6
$
12.87
Exercises — (
96.0
) $
3.32
Cancellations
24.6
(24.6
) $
16.43
December 25, 1999
477.8
611.2
$
12.87
Grants
(162.8
)
162.8
$
54.68
Options assumed in acquisitions —
4.3
$
5.21
Exercises
—
(
107.5
)
$
4.66
Cancellations
32.6
(32.6
) $
26.28
December 30, 2000
347.6
638.2
$
24.16
Supplemental grant
(51.9
)
51.9
$
25.69
2002 merit grant
(67.6
)
67.6
$
24.37
Other grants
(118.6
)
118.6
$
25.48
Options assumed in acquisitions —
9.0
$
19.25
Exercises
—
(
68.0
)
$
6.06
Cancellations
45.1
(48.8
) $
35.01
Additional shares reserved
900.0
— —
December 29, 2001
1,054.6
768.5
$
25.33
Options exercisable at:
December 25, 1999
206.4
$
4.71
December 30, 2000
195.6
$
7.07
December 29, 2001
230.9
$
11.27
Outstanding options
Range of exercise prices
Number of
shares (in
millions)
Weighted
average
contractual life
(in years)
Weighted average
exercise price
$0.01-$17.40
187.3
3.2
$
6.32
$17.42-$24.20
155.9
6.0
$
18.86
$24.23
-
$30.66
216.5
9.3
$
24.98
$30.70-$87.90
208.8
8.1
$
47.57
Total
768.5
6.8
$
25.33
Exercisable options
Range of exercise prices
Number of
shares (in
millions)
Weighted average
exercise price
$0.01-$17.40
174.0
$
5.97
$17.42
-
$24.20
35.5
$
18.75
$24.23-$30.66
4.6
$
26.98
$30.70-$87.90
16.8
$
46.10
Total
230.9
$
11.27