Western Digital 2005 Annual Report Download - page 62

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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 Stock Plans at
July 1, 2005 (in millions, except per share amounts):
Options Outstanding Options Exercisable
Remaining
Range of Number Contractual Life* Weighted Average Number Weighted Average
Exercise Prices of Shares (in years) Exercise Price of Shares Exercise Price
$ 2.10 Ó 3.47 2.0 5.61 $ 2.39 1.8 $ 2.41
3.50 Ó 3.85 2.0 6.66 3.81 1.1 3.78
3.87 Ó 6.00 2.7 5.38 5.24 2.5 5.27
6.05 Ó 8.58 1.9 5.73 7.61 1.5 7.67
8.62 Ó 8.89 2.3 9.17 8.88 0.1 8.69
8.99 Ó 11.22 1.9 8.01 10.04 0.5 10.00
11.27 Ó 12.84 3.4 6.29 12.34 1.6 12.18
12.87 Ó 14.94 2.0 5.84 13.23 1.0 13.00
15.06 Ó 48.50 1.3 2.22 26.00 1.3 26.11
Total
19.5 6.26 9.39 11.4 9.29
* Represents the weighted average remaining contractual lives of the options outstanding.
Deferred Stock Compensation
The Company granted approximately 1.6 million and 0.1 million shares of restricted stock during 2005 and 2004,
respectively. No shares of restricted stock were issued in 2003. The restricted stock vests annually over periods from two
to four years. The aggregate market value of the restricted stock at the date of issuance was $17.1 million and
$1.3 million in 2005 and 2004, respectively. These amounts have been recorded as deferred compensation, a separate
component of shareholders' equity, and are being amortized to operating expense over the corresponding vesting periods.
During 2005, the Company also awarded certain executives and other key employees 0.5 million restricted stock
units with performance-based vesting (""Performance Shares''). The Performance Shares which are earned will become
payable in August 2008 in the form of Western Digital common stock on a one-for-one basis. Compensation expense
related to these performance shares was $0.7 million in 2005.
Employee Stock Purchase Plan
The Company had an employee stock purchase plan (""ESPP'') that operated in accordance with Section 423 of the
Internal Revenue Code whereby eligible employees could 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 was less. Approximately 2.8 million shares of common stock remained unissued under this
plan at July 1, 2005. Approximately 1.6 million, 2.2 million and 2.1 million shares were issued under this plan during
2005, 2004 and 2003, respectively. Effective August 1, 2005, the Company suspended its ESPP.
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