Western Digital 2009 Annual Report Download - page 75

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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 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
Granted ........................ 4.2 20.02
Exercised ....................... (0.6) 9.59
Canceled or expired ................ (0.3) 20.10
Options outstanding at July 3, 2009 .... 11.3 $17.00 5.41 $105
Exercisable at July 3, 2009 ........... 5.3 $12.53 4.44 $ 74
The aggregate intrinsic value is calculated based on 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 below the
quoted price on the date the intrinsic value is determined. As of July 3, 2009, the Company had options outstanding to
purchase an aggregate of 10.5 million shares with an exercise price below the quoted price of the Company’s stock on that
date resulting in an aggregate intrinsic value of $105 million. During 2009 and 2008, the aggregate intrinsic value of
options exercised under the Company’s stock option plans was $8 million and $76 million, respectively, determined as of
the date of exercise.
The following table summarizes information about options outstanding and exercisable under the Stock Plans as of
July 3, 2009 (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 – 8.89 2.4 3.03 $ 5.74 2.4 $ 5.74
8.99 – 15.82 1.6 5.10 12.97 1.3 12.65
16.85 – 19.88 3.0 6.83 17.63 0.5 19.22
19.89 – 23.78 3.1 5.80 23.25 0.7 22.53
23.97 – 38.55 1.2 5.99 26.74 0.4 26.89
11.3 5.41 $17.00 5.3 $12.53
* Represents the weighted average remaining contractual lives of the options outstanding.
Deferred Stock Compensation
The Company granted approximately 0.9 million, 0.9 million and 1.8 million restricted stock units during 2009,
2008 and 2007, respectively, which are payable in an equal number of shares of the Company’s common stock at the time
of vesting of the units. Restricted stock unit awards vest over periods ranging from one to five years from the date of
grant. The aggregate market value of the shares underlying the restricted stock units at the date of grant was $19 million,
69
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)