Plantronics 2001 Annual Report Download - page 27

Significant option groups outstanding at March 31, 2001 and related weighted average prices
and lives are as follows:
Options Outstanding Options Exercisable
Number Weighted Number
Outstanding Average Weighted Exercisable Weighted
as of Remaining Average as of Average
Range of March 31, Contractual Exercise March 31, Exercise
Exercise Price 2001 Life Price 2001 Price
$ 0.30–$ 7.00 1,673,206 4.22 $ 3.91 1,666,956 $ 3.90
7.02– 19.92 1,777,645 7.14 13.79 1,144,306 12.72
20.00– 21.88 1,639,834 7.96 21.13 677,635 21.09
22.54– 35.46 2,144,510 9.07 29.02 214,805 24.09
36.00– 55.13 476,827 9.49 40.90 — —
$ 0.30–$55.13 7,712,022 7.36 $19.12 3,703,702 $10.94
Fair Value Disclosures. All options in fiscal 1999, 2000 and 2001 were granted at an exercise price
equal to the fair market value of Plantronics’ Common Stock at the date of grant.
The fair value of options at date of grant was estimated using the Black-Scholes model. The
following assumptions were used for 1999: dividend yield of 0%, an expected life of 5.6
years, expected volatility of 39% and risk free interest rate of 5.3%. For 2000 the assump-
tions were: dividend yield of 0%, an expected life of 6 years, expected volatility of 42%
and risk free interest rate of 5.9%. For 2001 the assumptions were: dividend yield of 0%,
an expected life of 6 years, expected volatility of 86% and a weighted average risk free
interest rate of 5.5%. Based upon those assumptions, the weighted average fair value at date
of grant for options granted during 1999, 2000 and 2001 were $8.42, $10.89 and $26.55 per
share, respectively.
Volatility is a measure of the amount by which a price has fluctuated over an historical period.
The higher the volatility, the more the returns on the stock can be expected to vary. The
risk free interest rate is the rate on a U.S. Treasury bill or bond that approximates the
expected life of the option.
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