Qualcomm 2004 Annual Report Download - page 77

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QUALCOMM 73
replaced the 1991 Stock Option Plan (the 1991 Plan), which expired in August 2001. Options granted under the 1991 Plan remain outstanding
until exercised or cancelled. The shares reserved under the 2001 Plan were equal to the number of shares available for future grant under the
1991 Plan on the date the 2001 Plan was approved by the Company’s stockholders. At that date, approximately 101,083,000 shares were
available for future grants under the 2001 Plan. In fiscal 2004, the Company reserved another 64,000,000 shares for future grants under the
2001 Plan. The Company may terminate the 2001 Plan at any time. 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 exercisable for up to 10 years from
the grant date. At September 30, 2004, options for approximately 120,860,000 shares under both plans were exercisable at prices ranging from
$1.40 to $86.19 per share for an aggregate exercise price of $2.1 billion.
The Company has adopted the 2001 Non-Employee Directors’ Stock Option Plan (the 2001 Directors’ Plan), which replaced the 1998 Non-
Employee Directors’ Stock Option Plan (the 1998 Directors’ Plan). Options granted under the 1998 Directors’ Plan remain outstanding until
exercised or cancelled. The shares reserved under the 2001 Directors’ Plan are equal to the number of shares available for future grant under
the 1998 Directors’ Plan on the date the 2001 Directors’ Plan was approved by the Company’s stockholders. At that date, 4,100,000 shares
were available for future grants under the 2001 Directors’ Plan. The Company may terminate the 2001 Directors’ Plan at any time. This plan
provides for non-qualified stock options to be granted to non-employee directors at fair market value, vesting over periods not exceeding five
years and are exercisable for up to 10 years from the grant date. At September 30, 2004, options for approximately 3,232,000 shares under
both plans were exercisable at prices ranging from $2.91 to $66.50 per share for an aggregate exercise price of $30 million.
Asummary of stock option transactions for the plans follows (number of shares in thousands):
Options Options Outstanding
Shares Exercise Price Per Share
Available Number Weighted
for Grant of Shares Range Average
Balance at September 30, 2001 95,778 216,350 $0.01 to $86.19 $11.10
Plan shares expired (62) — — —
Options granted (53,050) 53,050 12.81 to 30.02 24.35
Options cancelled 6,202 (6,202) 0.51 to 70.81 25.40
Options exercised — (28,650) 0.01 to 25.91 2.84
Balance at September 30, 2002 48,868 234,548 $0.07 to $86.19 $14.73
Plan shares expired (4) — — —
Options granted (33,664) 33,664 14.55 to 22.87 17.42
Options cancelled 8,546 (8,546) 0.79 to 73.94 24.15
Options exercised — (46,694) 0.15 to 19.57 3.28
Balance at September 30, 2003 23,746 212,972 $0.07 to $86.19 $17.28
Additional shares reserved 64,000 — — —
Options granted (31,252) 31,252 21.50 to 40.40 27.19
Options cancelled 4,420 (4,420) 2.30 to 70.00 28.15
Options exercised — (36,220) 0.14 to 37.34 7.85
Balance at September 30, 2004 60,914 203,584 $0.07 to $86.19 $20.25
Information about fixed stock options outstanding at September 30, 2004 follows (number of shares in thousands):
Options Outstanding
Weighted
Average Options Exercisable
Remaining Weighted Weighted
Contractual Average Average
Range of Number Life Exercise Number Exercise
Exercise Prices of Shares (In Years) Price of Shares Price
$0.07 to $3.37 28,449 2.11 $ 2.59 28,424 $ 2.59
$3.38 to $9.63 31,466 3.71 4.43 31,454 4.43
$11.92 to $17.47 28,412 7.99 16.33 9,952 16.13
$17.48 to $22.44 31,812 8.54 20.44 8,056 19.70
$22.77 to $29.21 36,792 6.97 27.18 20,331 27.05
$29.31 to $34.80 27,319 7.75 33.36 10,887 33.77
$34.88 to $86.19 19,334 5.88 45.64 15,546 46.32
203,584 6.18 $20.25 124,650 $17.41
There were approximately 129,990,000 options exercisable with a weighted average exercise price of $13.42 per share at September 30, 2003.
There were approximately 137,876,000 options exercisable with a weighted average exercise price of $8.97 per share at September 30, 2002.
QUALCOMM 73