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| 11. |
Stock Option and Stock Purchase Plans
|
Stock options represent the
right to purchase shares of our common stock in the future at a
price that is fixed on the day the options are granted (the grant
date).
The table below summarizes our
stock option activity for the past three years (in thousands, except
weighted average exercise price and fair value):
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2002
|
2001
|
2000
|
| |
Options |
|
|
Weighted
Average
Exercise
Price |
|
|
Options |
|
|
Weighted
Average
Exercise
Price |
|
|
Options |
|
|
Weighted
Average
Exercise
Price |
|
| Outstanding - beginning of year
|
2,733,472 |
|
$ |
9.61 |
|
|
2,365,098 |
|
$ |
6.48 |
|
|
1,755,381 |
|
$ |
4.53 |
|
| Granted equal to fair value
|
393,700 |
|
|
28.04 |
|
|
625,575 |
|
|
20.03 |
|
|
731,903 |
|
|
11.34 |
|
| Granted less than fair value
|
— |
|
|
— |
|
|
22,950 |
|
|
0.01 |
|
|
67,500 |
|
|
0.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total granted |
393,700 |
|
|
|
|
|
648,525 |
|
|
|
|
|
799,403 |
| Exercised |
103,997 |
|
|
5.93 |
|
|
255,439 |
|
|
4.78 |
|
|
180,686 |
|
|
4.73 |
|
| Forfeitures |
36,422 |
|
|
21.89 |
|
|
24,712 |
|
|
15.23 |
|
|
9,000 |
|
|
8.42 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding - end of year |
2,986,753 |
|
|
12.06 |
|
|
2,733,472 |
|
|
9.61 |
|
|
2,365,098 |
|
|
6.48 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
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| Exercisable at end of year |
1,265,025 |
|
|
6.96 |
|
|
1,265,671 |
|
|
5.95 |
|
|
1,144,523 |
|
|
4.91 |
| |
| Weighted average fair value
of |
|
options
granted during the year
|
|
|
|
13.90 |
|
|
|
|
|
9.01 |
|
|
|
|
|
5.77 |
|
The table below summarizes information
about stock options outstanding and exercisable at December 31, 2002
(shares in thousands):
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|
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Outstanding
Stock Options |
|
Exercisable
Stock Options |
| |
|
|
|
| |
|
Weighted
Average |
|
|
Weighted
Average |
|
|
|
|
Weighted
Average |
| Range of exercise prices |
Shares
|
Remaining
Contractual Life |
|
|
Exercise
Price |
|
Shares
|
|
|
Exercise
Price |
|
| $ 0.00 to $ 5.98 |
1,070 |
4.9 years |
|
$ |
3.65 |
|
785 |
|
$ |
3.96 |
| $ 5.99 to $ 11.97 |
873 |
6.6 years |
|
$ |
9.61 |
|
314 |
|
$ |
7.34 |
| $ 11.98 to $ 17.96 |
60 |
7.4 years |
|
$ |
15.29 |
|
46 |
|
$ |
15.13 |
| $ 17.97 to $ 23.95 |
598 |
8.2 years |
|
$ |
20.02 |
|
105 |
|
$ |
21.70 |
| $ 23.96 to $ 29.94 |
386 |
9.1 years |
|
$ |
28.04 |
|
15 |
|
$ |
27.81 |
|
| $ 0.00 to $ 29.94 |
2,987 |
6.7 years |
|
$ |
12.06 |
|
1,265 |
|
$ |
6.96 |
|
Under the 1995 Stock Option
Plan (the 1995 Plan) our Board of Directors (the Board) was authorized
to grant stock options to employees, agents, consultants or independent
contractors. No more than 2,025,000 shares could be issued under
the 1995 Plan. The exercise price of the granted options was equal
to our stock’s market price on the grant date. These options
generally were exercisable two years after the grant date, and they
expire ten years from the grant date. In May 1998, the Board suspended
the 1995 Plan. Options granted prior to the suspension were not
affected by this action.
In May 1998, our stockholders
approved the 1998 Stock Option Plan (the 1998 Plan), which authorized
the Board to grant stock options, stock appreciation rights, restricted
stock and performance awards to employees, agents, consultants or
independent contractors. No more than 2,531,250 shares could be
issued under this plan. In 2002, the Board granted 351,200 options
under the 1998 Plan to our employees and officers. Granted options
usually have an exercise price equal to our stock’s market
price on the grant date. These options generally may be exercised
three or more years after the grant date, and they expire ten years
after the grant date. In May 2002, the Board suspended the 1998
Plan. Options granted prior to the suspension were not affected
by this action.
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