Qualcomm 2004 Annual Report Download - page 39

QUALCOMM 35
Per Share Total Cumulative
Fiscal 2004
First quarter $0.070 $112 $112
Second quarter 0.050 81 193
Third quarter — — 193
Fourth quarter 0.070 114 $307
Total $0.190 $307
We intend to continue to pay quarterly dividends subject to continued capital availability and a determination that cash dividends continue to
be in the best interests of the stockholders. Our dividend policy may be affected by, among other items, our views on potential future capital
requirements, including those relating to research and development, creation and expansion of sales distribution channels and investments
and acquisitions, legal risks, stock repurchase programs and challenges to our business model.
Stock Options
Our stock option plans are part of a broad-based, long-term retention program that is intended to attract and retain talented employees and
directors and align stockholder and employee interests.
Pursuant to our 2001 Stock Option Plan (2001 Plan), we may grant options to selected employees, directors and consultants to purchase shares
of our common stock at a price not less than the fair market value of the stock at the date of grant. The 2001 Plan provides for the grant of both
incentive stock options and non-qualified stock options. Generally,options outstanding vest over periods not exceeding six years and are exer-
cisable for up to 10 years from the grant date. We also may grant options pursuant to our 2001 Non-Employee Directors’ Stock Option Plan
(the 2001 Directors’ Plan). This plan provides for non-qualified stock options to be granted to non-employee directors at an exercise price of not
less than fair market value of the stock at the date of grant, vesting over periods not exceeding five years and exercisable for up to 10 years from
the grant date. The Board of Directors may terminate the 2001 Plan and/or the 2001 Directors’ Plan at any time though it must, nevertheless,
honor any stock options previously granted pursuant to the plans.
Additional information regarding our stock option plans and plan activity for fiscal 2004, 2003 and 2002 is provided in our consolidated financial
statements. See “Notes to Consolidated Financial Statements, Note 8 — Employee Benefit Plans.”
Equity Compensation Plans Approved by Stockholders
Information about our equity compensation plans at September 30, 2004 that were either approved or not approved by our stockholders was
as follows (in thousands, except per share data):
Number of Weighted Number of
Shares to be Average Shares
Issued Upon Exercise Remaining
Exercise of Price of Available for
Outstanding Outstanding Future
Plan Category Options Options Issuance
Equity compensation plans approved by stockholders(a) 203,026 $20.30 78,370
Equity compensation plans not approved by stockholders(b) 558 $ 0.99 107
Total 203,584 $20.25 78,477
(a) Consists of six plans: our 1991 Stock Option Plan, 2001 Stock Option Plan, 1998 Non-Employee Directors’ Stock Option Plan, 2001 Non-Employee Directors’
Stock Option Plan, 2001 Employee Stock Purchase Plan and the Executive Retirement Matching Contribution Plan.
(b) Consists of two plans: our 1996 Non-Qualified Employee Stock Purchase Plan and the SnapTrack, Inc. 1995 Stock Option Plan.
Issuer Purchases of Equity Securities
On February 10, 2003, we authorized the expenditure of up to $1 billion to repurchase shares of our common stock over a two-year period.
During fiscal 2003, we bought 9,830,000 shares at a net aggregate cost of $158 million. While we did not repurchase any of our common
stock during fiscal 2004, we continue to evaluate repurchases under this program. At September 30, 2004, $834 million remains authorized
for repurchases under the program, which expires on February 9, 2005.