Western Digital 2001 Annual Report Download - page 60

WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
increments thereafter and have a ten-year term. As of June 29, 2001 options to purchase 7,532,746 and
13,423,861 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 and stock awards
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 and stock. 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. During
2001, the Company issued 1.3 million shares of restricted stock under the Broad-Based Plan to certain
employees. The stock vests on the second and third anniversary dates of the grant provided that the recipient is
still employed by the Company. The aggregate market value of the restricted stock at the dates of issuance of
$4.4 million has been recorded as deferred compensation, a separate component of shareholder's equity
(deÑciency), and is being amortized over the three-year vesting period. As of June 29, 2001, options to
purchase 3,641,118 shares of common stock were exercisable and 6,354,583 shares were available for grant as
options or stock awards, under this plan.
The Company has a Stock Option Plan for Non-Employee Directors (""Director Plan'') and has reserved
2.6 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 29, 2001, options to
purchase 527,192 shares of common stock were exercisable and options to purchase 1,125,964 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 27, 1998ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12,351 $16.92
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,119 11.10
ExercisedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (740) 7.30
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,004) 23.63
Options outstanding at July 3, 1999. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,726 13.19
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13,485 3.82
ExercisedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (288) 4.10
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (10,022) 9.92
Options outstanding at June 30, 2000ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20,901 8.83
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,843 5.45
ExercisedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (854) 3.14
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4,539) 10.02
Options outstanding at June 29, 2001ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23,351 $ 7.69
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