Western Digital 2000 Annual Report Download - page 54

WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
date of grant. Options granted generally vest 25% one year from the date of grant and in twelve quarterly
increments thereafter and have a ten-year term. As of June 30, 2000, options to purchase 7,533,074 and
11,734,723 shares of common stock were exercisable and available for grant, respectively, under this plan.
Pursuant to the terms of the Employee Plan, participants are permitted to utilize previously purchased
common stock as consideration to purchase additional common stock upon exercise of options or to exercise
on a cashless basis.
On September 30, 1999, the Company's Board of Directors approved the Broad-Based Stock Incentive
Plan (the ""Broad-Based Plan'') under which options to purchase shares of common stock may be granted to
employees of the Company and others. This plan is intended to qualify as ""broadly-based'' under the New
York Stock Exchange shareholder approval policy. The Compensation Committee determines the vesting
provisions and other terms of the options. To date, the options granted vest either 100% one year from the date
of grant or 25% every six months beginning six months from the date of grant. As of June 30, 2000, options to
purchase 792,648 and 12,515,448 shares of common stock were exercisable and available for grant,
respectively, under this plan.
The Company has a Stock Option Plan for Non-Employee Directors (""Director Plan'') and has reserved
1.6 million shares for issuance thereunder. The Director Plan provides for initial option grants to new directors
of 75,000 shares per director and additional grants of options to purchase 10,000 shares of common stock per
director each year upon their reelection as a director at the annual shareholders' meeting. Terms of the
Director Plan require that options have a ten-year term and that the exercise price of options be not less than
the fair market value at the date of grant. Options granted generally vest 25% one year from the date of grant
and in twelve quarterly increments thereafter and have a ten-year term. As of June 30, 2000, options to
purchase 243,131 shares of common stock were exercisable and options to purchase 237,839 shares of
common stock were available for grant.
The following table summarizes activity under the Employee, Broad-Based and Director Plans (in
thousands, except per share amounts):
Weighted Average
Number Exercise Price
of Shares Per Share
Options outstanding at June 28, 1997ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,586 $11.20
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,433 27.17
Exercised, net of value of redeemed sharesÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,166) 7.54
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (502) 20.00
Options outstanding at June 27, 1998ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12,351 16.92
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,119 11.10
Exercised, net of value of redeemed sharesÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (740) 7.30
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,004) 23.63
Options outstanding at July 3, 1999 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,726 13.19
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13,485 3.82
Exercised, net of value of redeemed sharesÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (288) 4.10
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (10,022) 9.92
Options outstanding at June 30, 2000ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20,901 $ 8.83
The signiÑcant increase in the number of shares canceled or expired in 2000 is a result of terminations
relating to restructuring and other attrition.
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