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Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
—
(
Continued)
Stock Option Activity
The Company issues new common shares upon exercise of stock options. The following is a summary of option activity for the Company
’
s
stock option plans, including options assumed from Maxtor, for the fiscal year ended June 27, 2008:
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the
Company’s common shares for the 28.0 million options that were in-the-money at June 27, 2008. During fiscal years 2008, 2007 and 2006 the
aggregate intrinsic value of options exercised under the Company’s stock option plans was $155 million, $280 million and $228 million,
respectively, determined as of the date of option exercise. The aggregate fair value of options vested during fiscal year 2008 was approximately
$84 million.
At June 27, 2008 the total compensation cost related to options granted to employees under the Company’s stock option plans (excluding
options assumed in the Maxtor acquisition) but not yet recognized was approximately $122 million, net of estimated forfeitures of approximately
$17 million. This cost is being amortized on a straight-line basis over a weighted-average remaining term of approximately 2.3 years and will be
adjusted for subsequent changes in estimated forfeitures. In addition to the stock-based compensation cost not yet recognized under the
Company’s stock option plans, the Company has additional stock-
based compensation costs related to options assumed in the Maxtor acquisition
of approximately $2 million, which will be amortized over a weighted-average period of approximately 0.9 years.
Nonvested Share Activity
Options
Number of
Shares
Weighted
-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(In millions)
(In millions)
Outstanding at June 29, 2007
56.6
$
10.94
Granted
10.0
24.43
Exercised
(10.0
)
10.94
Forfeitures and cancellations
(1.6
)
22.14
Outstanding at June 27, 2008
55.0
$
10.38
4.7
$
255
Vested and expected to vest at June 27, 2008
51.8
$
16.74
4.6
$
254
Exercisable at June 27, 2008
29.5
$
12.34
4.1
$
235
The following is a summary of nonvested share activity under the Company
’
s stock option plans, and nonvested stock assumed from
Maxtor for the fiscal year ended June 27, 2008:
94
Nonvested Shares
Number of
Shares
Weighted
-
Average
Grant-
Date
Fair
Value
(In millions)
Nonvested at June 29, 2007
1.7
$
20.71
Granted
0.2
$
22.24
Forfeitures and cancellations
(0.2
)
$
22.00
Vested
(0.7
)
$
21.40
Nonvested at June 27, 2008
1.0
$
19.10