Crucial 2011 Annual Report Download - page 74

The following table summarizes information about options outstanding as of September 1, 2011 :
The weighted-average grant-date fair value per share was $4.46 , $4.13 and $1.71 for options granted during 2011 , 2010 and 2009 ,
respectively. The total intrinsic value was $35 million , $13 million , and de minimis for options exercised during 2011 , 2010 and 2009 ,
respectively.
As of September 1, 2011 , $96 million of total unrecognized compensation cost related to nonvested awards was expected to be recognized
through the fourth quarter of 2015 , resulting in a weighted-average period of 1.3 years. As of September 1, 2011 , nonvested options had a
weighted-average exercise price of $6.99 , a weighted-average remaining contractual life of 4.3 years and an aggregate intrinsic value of $26
million .
The fair values of option awards were estimated as of the dates of grant 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 the time of the grant. No dividends were assumed in estimated option values. Assumptions used in the Black-
Scholes model are presented below:
Restricted Stock and Restricted Stock Units ("Restricted Stock Awards")
As of September 1, 2011 , there were 8.8 million shares of Restricted Stock Awards outstanding, of which 1.2 million were performance-
based Restricted Stock Awards. For service-based Restricted Stock Awards, restrictions generally lapse either in one-fourth or one-third
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 2011 is summarized as follows:
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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
$ 1.56 - $ 6.86
19.5
3.1
$
3.72
8.2
$
4.06
7.01 - 9.97
28.6
4.7
8.31
3.8
7.82
10.00 - 12.93
23.7
1.9
12.24
22.3
12.36
13.00 - 19.61
14.7
1.0
14.86
14.7
14.86
20.98 - 39.50
12.8
0.1
21.81
12.8
21.81
99.3
2.6
11.06
61.8
13.53
2011 2010 2009
Average expected life in years
5.1
5.1
4.9
Weighted-average expected volatility
56
%
60
%
73
%
Weighted-average risk-free interest rate
1.8
%
2.3
%
1.9
%