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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
of common stock were exercisable and 0.9 million shares were available for grant as options or stock awards under this
plan.
Under the Broad-Based Plan, the Company issued to certain employees 0.1 million and 0.2 million (net of
cancellations) shares of restricted stock during 2004 and 2002, respectively. No shares of restricted stock were issued in
2003. The stock issued in 2004 vests on the third, fourth, and Ñfth anniversary dates of the grant and the stock issued in
2002 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 (net of cancellations) of the restricted stock at the dates of issuance was
$1.3 million and $1.1 million for 2004 and 2002, respectively. These amounts have been recorded as deferred
compensation, a separate component of shareholders' equity, and are being amortized over the corresponding vesting
periods.
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 July 2, 2004, options to purchase 0.7 million shares of common stock were exercisable and 0.8 million shares were
available for grant under this plan.
The following table summarizes activity under the Employee, Broad-Based and Director Plans (in millions, except
per share amounts):
Weighted Average
Number Exercise Price
of Shares Per Share
Options outstanding at June 29, 2001 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23.4 $ 7.69
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.3 3.13
ExercisedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1.3) 3.50
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1.3) 8.46
Options outstanding at June 28, 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29.1 6.54
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.6 4.61
ExercisedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (8.8) 4.19
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.9) 7.69
Options outstanding at June 27, 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 25.0 6.89
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.4 11.70
ExercisedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3.0) 5.08
Canceled or expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1.3) 10.94
Options outstanding at July 2, 2004. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 25.1 7.75
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