Western Digital 2008 Annual Report Download - page 71

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Stock Options
The following table summarizes activity under the Stock Plans (in millions, except per share amounts):
Number
of Shares
Weighted Average
Exercise Price
Per Share
Remaining
Contractual Life
(in years)
Aggregate
Intrinsic
Value
Options outstanding at July 1, 2005 .... 19.5 $ 9.39
Granted ........................ 1.2 17.22
Exercised ....................... (7.6) 8.36
Canceled or expired ................ (0.7) 11.79
Options outstanding at June 30, 2006. . . 12.4 $10.65
Granted ........................ 1.6 19.30
Exercised ....................... (2.7) 8.34
Canceled or expired ................ (0.5) 18.68
Options outstanding at June 29, 2007. . . 10.8 $12.15
Granted ........................ 2.1 25.22
Exercised ....................... (4.2) 10.59
Canceled or expired ................ (0.7) 29.34
Options outstanding at June 27, 2008. . . 8.0 $14.92 5.73 $160
Exercisable at June 27, 2008 .......... 4.2 $ 9.11 4.66 $109
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and
the quoted price of the Company’s common stock for those awards that have an exercise price currently below the quoted
price. As of June 27, 2008, the Company had options outstanding to purchase an aggregate of 8.0 million shares with an
exercise price below the quoted price of the Company’s stock resulting in an aggregate intrinsic value of $160 million.
During 2008 and 2007, the aggregate intrinsic value of options exercised under the Company’s stock option plans was
$76 million and $30 million, respectively, determined as of the date of exercise.
The following tables summarize information about options outstanding and exercisable under the Stock Plans as of
June 27, 2008 (in millions, except per share amounts):
Range of
Exercise Prices
Number
of Shares
Remaining
Contractual Life*
(in years)
Weighted Average
Exercise Price
Number
of Shares
Weighted Average
Exercise Price
Options Outstanding Options Exercisable
$ 2.10 – 6.00 1.6 2.97 $ 3.92 1.6 $ 3.92
6.05 – 11.99 1.6 5.46 9.18 1.3 9.02
12.25 – 19.40 2.1 6.91 15.95 1.1 14.35
19.42 – 23.46 1.8 6.59 22.45 0.1 20.03
23.97 – 38.55 0.9 6.77 27.48 0.1 24.17
8.0 5.73 $14.92 4.2 $ 9.11
* Represents the weighted average remaining contractual lives of the options outstanding.
Deferred Stock Compensation
The Company granted approximately 0.9 million, 1.8 million and 2.0 million shares of restricted stock and
restricted stock unit awards during 2008, 2007 and 2006, respectively. The restricted stock and restricted stock unit
awards vest annually over periods from one to five years. The aggregate market value of the restricted stock at the date of
issuance was $23 million, $36 million and $27 million in 2008, 2007 and 2006, respectively. These amounts have been
recorded as deferred compensation and are being amortized to expense over the corresponding vesting periods. For
65
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)