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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Nonvested Share Activity
The following is a summary of nonvested share activity under the Company’s stock option plans, including
nonvested stock assumed from Maxtor:
At June 29, 2007, the total compensation cost related to nonvested shares granted to employees under the
Company’s stock option plans (excluding nonvested shares exchanged in the Maxtor acquisition) but not yet
recognized was approximately $11 million, net of estimated forfeitures of approximately $1 million. This cost is
being amortized on a straight-line basis over a weighted-average remaining term of 2.8 years and will be adjusted for
subsequent changes in estimated forfeitures. In addition, the Company has additional stock-based compensation
related to nonvested shares exchanged in the Maxtor acquisition of approximately $18 million, which will be
amortized over a weighted-average period of approximately 1.8 years.
ESPP Information
During fiscal years 2007 and 2006, the aggregate intrinsic value of options exercised under the Company’s
ESPP was $25 million and $40 million, respectively. At June 29, 2007, the total compensation cost related to options
to purchase the Company’s common shares under the ESPP but not yet recognized was approximately $2 million.
This cost will be amortized on a straight-line basis over a weighted-average period of approximately 0.2 years.
The following table shows the shares issued, and their respective weighted-average purchase price, pursuant to
the ESPP during fiscal year 2007.
Pro Forma Disclosures
The following table illustrates the effect on net income and net income per share if the Company had applied the
fair value recognition provisions of SFAS No. 123 to options granted under the Company’s stock-based
compensation plans prior to July 1, 2005. For purposes of this pro forma disclosure, the value of the options was
80
Weighted-
Average
Number of
Grant-
Date
Nonvested Shares
Shares
Fair Value
(In millions)
Nonvested at June 30, 2006
2.3
$
20.81
Granted
0.3
$
23.08
Forfeitures and cancellations
(0.1
)
$
20.08
Vested
(0.8
)
$
21.99
Nonvested at June 29, 2007
1.7
$
20.71
Vested and expected to vest at June 29, 2007
1.5
$
20.65
Weighted-
Weighted
-
Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Shares
Price
Term
Value
(In millions)
(In Years)
(In millions)
Outstanding at June 29, 2007
1.5
$
18.50
0.2
$
4.7
Vested and expected to vest at June 29, 2007
1.5
$
18.50
0.2
$
4.7
January 31, 2007
July 29, 2006
Shares issued (in millions)
1.7
1.7
Weighted
-
average purchase price per share
$
19.09
$
16.45