Seagate 2014 Annual Report Download - page 104
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
FairValue—ThefairvalueoftheCompany'snonvestedawardsandperformanceawardssubjecttoanAEPSconditionforfiscalyears2015,2014,and2013,
isthepricepershareoftheCompany'scommonstockonthegrantdate.Theweightedaveragegrantdatefairvalueofawardsgrantedareasfollows:
ThefairvalueoftheCompany'ssharesrelatedtooptionsgrantedtoemployees,sharesissuedfromtheESPPandperformanceawardssubjecttoTSR/ROIC
conditionsforfiscalyears2015,2014,and2013wereestimatedusingthefollowingassumptions:
StockCompensationExpense
TheCompanyrecorded$137million,$118millionand$76millionofshare-basedcompensationduringfiscalyears2015,2014,and2013,respectively.
Managementhasmadeanestimateofexpectedforfeituresandisrecognizingcompensationcostsonlyforthoseequityawardsexpectedtovest.Whenestimating
forfeitures,theCompanyconsidersvoluntaryterminationbehavioraswellasanalysisofactualforfeitedawards.
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FiscalYears
2015 2014 2013
Nonvestedawards:
Weighted-averagefairvalue $ 58.93 $ 41.18 $ 30.26
Performanceawards:
Weighted-averagefairvalue $ 59.51 $ 48.69 $ 30.01
FiscalYears
2015 2014 2013
Options
Expectedterm(inyears) 4.2 4.2 4.2
Volatility 33–35% 35–41% 41–53%
Weighted-averagevolatility 34% 40% 52%
Expecteddividendrate 2.9%–4.0% 3.1%–3.8% 3.6–5.8%
Weighted-averageexpecteddividendrate 3.0% 3.7% 4.4%
Risk-freeinterestrate 1.1–1.5% 1.2–1.4% 0.5–1.1%
Weighted-averagefairvalue $12.98 $10.41 $8.96
ESPP
Expectedterm(inyears) 0.5 0.5 0.5
Volatility 28–29% 34–36% 38–46%
Weighted-averagevolatility 28% 35% 42%
Expecteddividendrate 3.0–3.8% 3.3–3.5% 2.2–4.2%
Weighted-averageexpecteddividendrate 3.4% 3.4% 3.2%
Risk-freeinterestrate 0.1% 0.1% 0.1%
Weighted-averagefairvalue $12.21 $10.46 $7.74
Performancerestrictedshareawardssubjecttomarketcondition
Expectedterm(inyears) 3.00 3.00 2.98
Weighted-averagevolatility 40% 46% 48%
Expecteddividendrate 2.8% 3.8% 4.3%
Risk-freeinterestrate 1.1% 0.9% 0.3%
Weighted-averagefairvalue $58.31 $37.51 $26.41