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Form 10-K
based on the U.S. Treasury yield curve with a maturity equal to the expected life assumed at the
grant date. Weighted-average values used for option grants in 2011, 2010 and 2009 were as follows:
2011 2010 2009
Year Ended June 30,
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . 1.79% 2.03% 1.48%
Expected dividend yield . . . . . . . . . . . . . . . . . . . . . . 0% 0% 0%
Expected life (years). . . . . . . . . . . . . . . . . . . . . . . . . 5.00 4.92 3.94
Expected volatility. . . . . . . . . . . . . . . . . . . . . . . . . . . 57% 57% 58%
Weighted average fair value of options granted. . . . . $ 24.47 $ 24.34 $ 14.06
A summary of our share option activity and related information for the year ended June 30,
2011 is as follows:
Options
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value
Outstanding at the beginning of the
period . . . . . . . . . . . . . . . . . . . . . 2,858,500 $ 22.03
Granted . . . . . . . . . . . . . . . . . . . . . . 285,205 $ 48.76
Exercised . . . . . . . . . . . . . . . . . . . . (315,175) $ 22.25
Forfeited/cancelled. . . . . . . . . . . . . . (10,597) $ 41.23
Outstanding at the end of the
period . . . . . . . . . . . . . . . . . . . . . 2,817,933 $ 24.63 5.58 $ 66,523
Vested or expected to vest at the
end of the period . . . . . . . . . . . . . 2,772,556 $ 24.27 5.52 $ 66,357
Exercisable at the end of the
period . . . . . . . . . . . . . . . . . . . . . 2,266,351 $ 19.94 4.80 $ 63,300
The intrinsic value in the table above represents the total pre-tax amount, net of exercise price,
which would have been received by option holders if all option holders had exercised all options with
an exercise price lower than the market price on June 30, 2011. The total intrinsic value of options
exercised during the fiscal years ended June 30, 2011, 2010 and 2009 was $8,319, $26,667, and
$15,203, respectively.
Restricted share units
The fair value of RSU grants is equal to the fair market value of our shares on the date of grant
and is recognized as expense on a straight-line basis over the requisite service period, net of
estimated forfeitures based on historical experience. RSUs generally vest quarterly for 3 years for
directors and 25% after one year and quarterly thereafter for employees.
71