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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
The signiÑcant increase in the number of shares canceled or expired in 2000 was the result of
terminations relating to restructuring and other attrition.
The following tables summarize information about options outstanding and exercisable under the
Employee, Broad-Based and Director Plans at June 29, 2001 (in thousands, except per share amounts):
Options Outstanding
Options Exercisable
Weighted Average Weighted
Range of Number Contractual Life Average Number Weighted Average
Exercise Prices of Shares (in years) Exercise Price of Shares Exercise Price
$ 1.44 10 0.38 $ 1.44 10 $ 1.44
1.62 Ó 2.81 2,623 7.75 2.75 1,810 2.76
3.25 Ó 4.31 2,687 5.97 3.76 1,208 3.45
4.37 Ó 4.56 3,327 8.45 4.47 1,339 4.45
4.68 Ó 5.62 1,587 8.08 5.05 384 4.94
5.81 Ó 6.00 4,630 9.31 6.00 332 6.00
6.12 Ó 8.81 3,110 5.84 7.45 2,394 7.68
8.87 Ó 12.87 3,450 6.36 11.88 2,535 11.88
13.50 Ó 48.25 1,927 6.01 24.54 1,689 25.48
Total 23,351 7.37 7.69 11,701 9.45
Some of the Company's new venture subsidiaries maintain stock option plans for their own employees
and directors and for directors of the Company. The terms of these plans are similar to those of the Company's
Employee Plan. These new ventures have reserved up to approximately 17% 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, the ESPP and new venture option plans
collectively called ""options'') granted subsequent to July 1, 1995, under the fair value method of that
statement.
The fair value of options granted in 1999, 2000 and 2001 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
1999 2000 2001 1999 2000 2001
Option life (in years) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.0 4.0 2.5 2.0 2.0 2.0
Risk-free interest rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.75% 6.15% 4.20% 5.75% 6.15% 4.20%
Stock price volatility ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .82 .83 1.05 .82 .83 1.05
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:
1999 2000 2001
Options granted under the Stock Option Plans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $7.74 $2.44 $3.86
Shares granted under the ESPP PlanÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $9.92 $8.77 $4.65
51