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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The fair values of all ESPP purchase rights granted on or prior to July 3, 2015 have been estimated at the date of
grant using a Black-Scholes-Merton option-pricing model with the following weighted average assumptions:
ESPP
2015 2014 2013
Option life (in years) .................................................. 1.26 1.24 1.24
Risk-free interest rate ................................................. 0.45% 0.26% 0.23%
Stock price volatility .................................................. 0.26 0.31 0.42
Dividend yield ....................................................... 2.34% 1.64% 1.61%
Fair value ........................................................... $14.50 $14.62 $10.36
Stock Repurchase Program
The Company’s Board of Directors previously authorized $3.0 billion for the repurchase of the Company’s
common stock. On February 3, 2015, the Company’s Board of Directors authorized an additional $2.0 billion for the
repurchase of its common stock and approved the extension of its stock repurchase program to February 3, 2020. The
Company repurchased 9.6 million shares for a total cost of $970 million during 2015. The remaining amount avail-
able to be purchased under the Company’s stock repurchase program as of July 3, 2015 was $2.2 billion. Subsequent
to July 3, 2015 and through August 13, 2015, the Company repurchased an additional 0.7 million shares of its
common stock for a total cost of $60 million. The Company may continue to repurchase its stock as it deems appro-
priate. Repurchases under the stock repurchase program may be made in the open market or in privately negotiated
transactions and may be made under a Rule 10b5-1 plan. The Company expects stock repurchases to be funded
principally by operating cash flows and borrowings under the Credit Agreement.
Stock Reserved for Issuance
The following table summarizes all shares of common stock reserved for issuance at July 3, 2015 (in millions):
Number
of Shares
Maximum shares issuable in connection with:
Outstanding awards and shares available for award grants ........................... 16.6
ESPP .................................................................. 4.8
Total ................................................................... 21.4
Dividends to Shareholders
On September 13, 2012, the Company announced that its Board of Directors had authorized the adoption of a
quarterly cash dividend policy. Under the cash dividend policy, holders of the Company’s common stock receive divi-
dends when and as declared by the Company’s Board of Directors. In 2015, the Company declared aggregate cash
dividends of $1.80 per share of the Company’s common stock, totaling $418 million, of which $302 million was paid
during 2015. The Company also paid $94 million of dividends in 2015 related to dividends accrued in 2014. On
August 4, 2015, the Company declared a cash dividend of $0.50 per share of its common stock to shareholders of
record as of October 2, 2015, which will be paid on October 15, 2015. The Company may modify, suspend or cancel
its cash dividend policy in any manner and at any time.
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