Western Digital 2004 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2004 Western Digital annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
The following tables summarizes information about options outstanding and exercisable under the Employee,
Broad-Based and Director Plans at July 2, 2004 (in millions, except per share amounts):
Options Outstanding Options Exercisable
Weighted Average
Range of Number Contractual Life Weighted Average Number Weighted Average
Exercise Prices of Shares (in years) Exercise Price of Shares Exercise Price
$ 2.10 2.8 7.24 $ 2.10 1.6 $ 2.10
2.21 Ó 3.50 1.8 4.74 3.12 1.6 3.14
3.63 Ó 3.85 3.2 8.16 3.84 1.3 3.84
3.88 Ó 4.87 2.7 6.05 4.43 2.3 4.44
4.94 Ó 5.70 0.6 6.09 5.23 0.4 5.23
5.72 Ó 6.00 2.9 6.27 5.98 2.5 5.99
6.05 Ó 8.58 2.8 5.96 7.39 1.5 7.01
8.63 Ó 11.88 2.8 4.93 10.47 1.9 10.63
11.89 Ó 12.88 3.2 7.18 12.73 1.2 12.64
13.00 Ó 48.50 2.3 5.32 21.01 1.5 25.25
Total 25.1 6.33 7.75 15.8 7.82
Employee Stock Purchase Plan
The Company has an employee stock purchase plan (""ESPP'') that operates in accordance with Section 423 of the
Internal Revenue Code whereby eligible employees may authorize payroll deductions of up to 10% of their salary to
purchase shares of the Company's common stock at 85% of the fair market value of common stock on the date of grant
or the exercise date, whichever is less. Approximately 5.4 million shares of common stock remain reserved for issuance
under this plan. Approximately 2.2 million, 2.1 million and 1.3 million shares were issued under this plan during 2004,
2003 and 2002, respectively.
Stock Reserved for Issuance
The following table summarizes all shares of common stock reserved for issuance at July 2, 2004 (in millions):
Number
of Shares
Issuable in connection with:
Exercise of stock options, including options available for grant ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 30.7
Employee stock purchase plan ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.4
36.1
Fair Value Disclosures
Pro forma information regarding net income and earnings 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 (see Note 1 for further information on pro forma net income and earnings per share).
49