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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
and will be adjusted for subsequent changes in estimated forfeitures. The aggregate fair value of nonvested awards vested during fiscal year 2012
was approximately $11 million.
Performance Awards
The following is a summary of performance award activities:
At June 29, 2012, the total compensation cost related to performance awards granted to employees but not yet recognized was
approximately $16 million. This cost is being amortized on a straight-line basis over a weighted-average remaining term of 3 years.
ESPP
During fiscal years 2012, 2011 and 2010, the aggregate intrinsic value of shares purchased under the Company's ESPP was approximately
$17 million, $7 million and $31 million respectively. At June 29, 2012, the total compensation cost related to options to purchase the Company's
ordinary shares under the ESPP but not yet recognized was approximately $1 million. This cost will be amortized on a straight-line basis over a
weighted-average period of approximately one month. During fiscal year 2012, the Company issued 3.0 million ordinary shares with a weighted-
average purchase price of $11.79 per share.
Tax-Deferred Savings Plan
The Company has a tax-deferred savings plan, the Seagate 401(k) Plan (the "40l(k) plan"), for the benefit of qualified employees. The 40l
(k) plan is designed to provide employees with an accumulation of funds at retirement. Qualified employees may elect to make contributions to
the 401(k) plan on a bi-weekly basis. Pursuant to the 401(k) plan, the Company matches 50% of employee contributions, up to 6% of
compensation, subject to maximum annual contributions of $3,500 per participating employee. During fiscal years 2012, 2011, and 2010, the
Company made matching contributions of $13 million, $13 million and $12 million, respectively.
Deferred Compensation Plan
On January 1, 2001, the Company adopted the SDCP for the benefit of eligible employees. This plan is designed to permit certain
discretionary employer contributions, in excess of the tax limits applicable to the 401(k) plan and to permit employee deferrals in excess of
certain tax limits. The Company's assets designated to pay benefits under the plan are held by a rabbi trust. The assets and liabilities of a rabbi
trust are accounted for as assets and liabilities of the Company. As of June 29, 2012 and July 1, 2011, the assets held in the rabbi trust were
approximately $73 million and $84 million, respectively, and are included in Restricted cash and investments in the Consolidated Balance
Sheets. The deferred compensation
103
Performance Awards
Number of
Shares
Weighted
-
Average
Grant-
Date
Fair Value
(In millions)
Performance awards at July 1, 2011
0.6
$
12.05
Granted
1.2
$
10.05
Forfeitures
—
$
—
Vested
(0.1
)
$
11.36
Performance awards at June 29, 2012
1.7
$
10.69