Crucial 2013 Annual Report Download - page 93

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92
The weighted-average grant-date fair value per share was $3.34, $3.18 and $4.46 for options granted during 2013, 2012
and 2011, respectively. The total intrinsic value was $103 million, $6 million, and $35 million for options exercised during
2013, 2012 and 2011, 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. The expected lives of options granted were based, in part, on historical experience and on the terms and conditions
of the options. 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 2013 2012 2011
Average expected life in years 5.1 5.1 5.1
Weighted-average expected volatility 59% 66% 56%
Weighted-average risk-free interest rate 0.7% 0.9% 1.8%
Restricted Stock and Restricted Stock Units ("Restricted Stock Awards")
As of August 29, 2013, there were 13.0 million shares of Restricted Stock Awards outstanding, of which 3.4 million were
performance-based Restricted Stock Awards. For service-based Restricted Stock Awards, restrictions generally lapse in one-
fourth increments during each year of employment after the grant date. For performance-based Restricted Stock Awards,
vesting is contingent upon meeting certain performance goals. Restricted Stock Awards activity for 2013 is summarized as
follows:
Number of
Shares
Weighted-
Average Grant
Date Fair
Value Per
Share
Outstanding at August 30, 2012 9.4 $ 6.87
Granted 6.6 6.23
Restrictions lapsed (2.5) 7.06
Cancelled (0.5) 7.29
Outstanding at August 29, 2013 13.0 6.49
Expected to vest after August 29, 2013 11.9 $ 6.41
Restricted Stock Awards granted for 2013, 2012 and 2011 were as follows:
For the year ended 2013 2012 2011
Service-based awards 5.4 3.9 4.4
Performance-based awards 1.2 1.9 1.2
Weighted-average grant-date fair values per share $ 6.23 $ 5.43 $ 8.72
The aggregate fair value at the lapse date of awards for which restrictions lapsed during 2013, 2012 and 2011 was $17
million, $32 million and $43 million, respectively.