Seagate 2012 Annual Report Download - page 107
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Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The fair value of the Company's shares related to options granted to employees, shares issued from the ESPP and performance awards
subject to TSR/ROIC conditions for fiscal years 2013, 2012, and 2011 were estimated using the following assumptions:
Stock Compensation Expense
The Company recorded $76 million, $51 million and $51 million of share-based compensation during fiscal years 2013, 2012, and 2011,
respectively. Management has made an estimate of expected forfeitures and is recognizing compensation costs only for those equity awards
expected to vest. When estimating forfeitures, the Company considers voluntary termination behavior as well as analysis of actual forfeited
awards.
99
Fiscal Years
2013
2012
2011
Options
Expected term (in years)
4.2
4.2
4.2
Volatility
41
–
53%
49
–
53%
49
–
57%
Weighted
-
average volatility
52%
50%
55%
Expected dividend rate
3.6
–
5.8%
3.8
–
6.5%
0
–
4.3%
Weighted
-
average expected dividend rate
4.4%
5.9%
0.1%
Risk
-
free interest rate
0.5
–
1.1%
0.6
–
0.9%
0.9
–
1.8%
Weighted
-
average fair value
$8.96
$3.61
$5.32
ESPP
Expected term (in years)
0.5
0.5
0.5
Volatility
38
–
46%
45
–
54%
44
–
47%
Weighted
-
average volatility
42%
49%
45%
Expected dividend rate
2.2
–
4.2%
3.9
–
5.2%
—
%
Weighted
-
average expected dividend rate
3.2%
4.7%
—
%
Risk
-
free interest rate
0.1%
0.1
–
0.2%
0.1
–
0.2%
Weighted
-
average fair value
$7.74
$4.89
$3.42
Performance restricted share awards subject
to market condition
Expected term (in years)
2.98
2.96
2.96
Weighted
-
average volatility
48%
65%
64%
Expected dividend rate
4.3%
6.4%
—
Risk
-
free interest rate
0.3%
0.3%
0.8%
Weighted
-
average fair value
$26.41
$10.05
$12.13