Crucial 2012 Annual Report Download - page 78

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Option activity for 2012 is summarized as follows:
Number of
Shares
Weighted-
Average
Exercise Price
Per Share
Weighted-
Average
Remaining
Contractual
Life
(In Years) Aggregate Intrinsic Value
Outstanding at September 1, 2011 99.3 $ 11.06
Granted 21.4 5.74
Exercised (1.5) 3.49
Cancelled or expired (23.5) 17.43
Outstanding at August 30, 2012 95.7 8.42 2.8 $ 53
Exercisable at August 30, 2012 55.3 $ 9.71 1.7 $ 31
Expected to vest after August 30, 2012 38.6 6.65 4.4 22
The following table summarizes information about options outstanding as of August 30, 2012:
Outstanding Options Exercisable Options
Range of Exercise Prices Number of Shares
Weighted-
Average
Remaining
Contractual
Life (In
Years)
Weighted-
Average
Exercise
Price
Per Share Number of Shares
Weighted-
Average
Exercise
Price
Per Share
$ 2.07 - $ 4.52 13.4 2.2 $ 3.01 9.4 $ 3.07
5.00 - 7.92 40.8 4.1 6.45 13.0 6.84
8.02 - 10.89 12.9 4.1 9.58 4.4 9.59
11.03 - 13.99 22.3 0.8 12.44 22.2 12.45
14.01 - 19.61 6.3 0.7 16.05 6.3 16.05
95.7 2.8 8.42 55.3 9.71
The weighted-average grant-date fair value per share was $3.18, $4.46 and $4.13 for options granted during 2012, 2011
and 2010, respectively. The total intrinsic value was $6 million, $35 million, and $13 million for options exercised during
2012, 2011 and 2010, respectively.
The fair values of option awards were estimated at each grant date using the Black-Scholes option valuation model. The
Black-Scholes model requires the input of assumptions, including the expected stock price volatility and estimated option
life. The expected volatilities utilized were based on implied volatilities from traded options on our stock and on historical
volatility. Since 2009, the expected lives of options granted were based, in part, on historical experience and on the terms and
conditions of the options. Prior to 2009, the expected lives of options granted were based on the simplified method provided by
the Securities and Exchange Commission. The risk-free interest rates utilized were based on the U.S. Treasury yield in effect at
each grant date. No dividends were assumed in estimated option values. Assumptions used in the Black-Scholes model are
presented below:
For the year ended 2012 2011 2010
Average expected life in years 5.1 5.1 5.1
Weighted-average expected volatility 66% 56% 60%
Weighted-average risk-free interest rate 0.9% 1.8% 2.3%