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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
The following tables summarize information about options outstanding and exercisable under the
Employee, Broad-Based and Director Plans at June 30, 2000 (in thousand, except per share amounts):
Options Outstanding
Options Exercisable
Weighted Average Weighted
Number Contractual Life Average Number Weighted AverageRange of
of Shares (in years) Exercise Price of Shares Exercise PriceExercise Prices
$ 1.44 12 1.37 $ 1.44 12 $ 1.44
1.62 Ó 2.81 3,285 8.71 2.77 1,079 2.69
3.31 Ó 4.37 2,459 6.64 3.67 73 3.74
4.43 Ó 4.44 2,197 9.67 4.44 Ì Ì
4.50 Ó 6.50 2,774 8.87 5.29 595 5.91
6.56 Ó 8.81 2,931 5.91 7.84 2,237 7.94
8.87 Ó 11.87 2,611 6.90 11.22 1,935 11.37
12.25 Ó 17.19 2,371 8.17 12.99 930 13.09
17.25 Ó 34.19 2,173 7.22 25.59 1,630 26.25
34.50 Ó 48.50 88 6.89 37.93 78 37.74
Total 20,901 7.74 $ 8.83 8,569 $12.19
Some of the Company's new venture subsidiaries maintain stock option plans for their own employees
and directors. The terms of these plans are similar to those of the Company's Employee Plan. These new
ventures have reserved up to approximately 30% of their stock for existing and future option grants to their
employees and directors.
Pro Forma Information
Pro forma information regarding net income (loss) and earnings (loss) per share is required by
SFAS 123. This information is required to be determined as if the Company had accounted for its stock
options (including shares issued under the Stock Option Plans and the ESPP, collectively called ""options'')
granted subsequent to July 1, 1995, under the fair value method of that statement.
The fair value of options granted in 1998, 1999 and 2000 reported below has been estimated at the date of
grant using a Black-Scholes option pricing model with the following weighted average assumptions:
Stock Option Plans ESPP Plan
1998 1999 2000 1998 1999 2000
Option life (in years) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.5 5.0 4.0 2.0 2.0 2.0
Risk-free interest rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.50% 5.75% 6.15% 5.50% 5.75% 6.15%
Stock price volatility ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .76 .82 .83 .76 .82 .83
Dividend yield ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ ÌÌÌÌÌÌ
The following is a summary of the per share weighted average fair value of stock options granted in the
years listed below:
1998 1999 2000
Options granted under the Stock Option Plans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $17.10 $7.74 $2.44
Shares granted under the ESPP PlanÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 7.39 $9.92 $8.77
The Company applies APB Opinion No. 25 in accounting for its stock option and ESPP plans and,
accordingly, no compensation expense has been recognized for the options in the consolidated Ñnancial
statements. Had the Company determined compensation expense based on the fair value at the grant date for
50