Seagate 2014 Annual Report Download - page 104

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TableofContents
SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
FairValue—ThefairvalueoftheCompany'snonvestedawardsandperformanceawardssubjecttoanAEPSconditionforfiscalyears2015,2014,and2013,
isthepricepershareoftheCompany'scommonstockonthegrantdate.Theweightedaveragegrantdatefairvalueofawardsgrantedareasfollows:
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2015,2014,and2013wereestimatedusingthefollowingassumptions:
StockCompensationExpense
TheCompanyrecorded$137million,$118millionand$76millionofshare-basedcompensationduringfiscalyears2015,2014,and2013,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.
101
 FiscalYears
 2015 2014 2013
Nonvestedawards:      
Weighted-averagefairvalue  $ 58.93 $ 41.18 $ 30.26
Performanceawards:      
Weighted-averagefairvalue  $ 59.51 $ 48.69 $ 30.01
 FiscalYears
 2015 2014 2013
Options    
Expectedterm(inyears) 4.2  4.2  4.2
Volatility 33–35%  35–41%  41–53%
Weighted-averagevolatility  34%  40%  52%
Expecteddividendrate 2.9%–4.0%  3.1%–3.8%  3.6–5.8%
Weighted-averageexpecteddividendrate 3.0%  3.7%  4.4%
Risk-freeinterestrate 1.1–1.5%  1.2–1.4%  0.5–1.1%
Weighted-averagefairvalue  $12.98  $10.41 $8.96
ESPP    
Expectedterm(inyears) 0.5  0.5  0.5
Volatility 28–29%  34–36%  38–46%
Weighted-averagevolatility  28%  35%  42%
Expecteddividendrate 3.0–3.8%  3.3–3.5%  2.2–4.2%
Weighted-averageexpecteddividendrate 3.4%  3.4%  3.2%
Risk-freeinterestrate 0.1%  0.1%  0.1%
Weighted-averagefairvalue  $12.21  $10.46 $7.74
Performancerestrictedshareawardssubjecttomarketcondition    
Expectedterm(inyears) 3.00  3.00  2.98
Weighted-averagevolatility  40%  46%  48%
Expecteddividendrate 2.8%  3.8%  4.3%
Risk-freeinterestrate 1.1%  0.9%  0.3%
Weighted-averagefairvalue  $58.31  $37.51  $26.41