Western Digital 2011 Annual Report Download - page 69

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Stock Option Activity
The following table summarizes stock option activity under the Stock Plans over the last three fiscal years
(in millions, except per share amounts and remaining contractual lives):
Number
of Shares
Weighted Average
Exercise Price
Per Share
Weighted Average
Remaining
Contractual Life
(in years)
Aggregate
Intrinsic
Value
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
Granted ....................... 1.4 36.06
Exercised....................... (3.1) 14.67
Canceled or expired . . . ............ (0.2) 22.78
Options outstanding at July 2, 2010 .... 9.4 $20.61
Granted ....................... 2.5 26.59
Exercised....................... (1.4) 16.83
Canceled or expired . . . ............ (0.3) 26.21
Options outstanding at July 1, 2011 .... 10.2 $22.49 4.6 $145
Exercisable at July 1, 2011 ........... 5.5 $19.36 3.8 $ 95
Vested and expected to vest after
July 1, 2011 .................... 10.1 $22.43 4.5 $144
If an option has an exercise price that is less than the quoted price of the Company’s common stock at the particular
time, the aggregate intrinsic value of that option at that time is calculated based on the difference between the exercise
price of the options and the quoted price of the Company’s common stock at that time. As of July 1, 2011, the Company
had options outstanding to purchase an aggregate of 10.1 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 $145 million at that date. During 2011,
2010 and 2009, the aggregate intrinsic value of options exercised under the Stock Plans was $25 million, $72 million
and $8 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 1, 2011 (in millions, except per share amounts):
Range of
Exercise Prices
Number
of Shares
Weighted Average
Remaining
Contractual Life
(in years)
Weighted Average
Exercise Price
Number
of Shares
Weighted Average
Exercise Price
Options Outstanding Options Exercisable
$ 2.10 – $13.76 1.6 2.5 $ 8.98 1.6 $ 8.97
$ 13.95 – $20.55 2.2 4.6 17.59 1.4 18.11
$ 21.29 – $25.95 2.3 4.2 23.89 1.6 23.70
$ 26.17 – $26.17 2.2 6.2 26.17 — 26.17
$ 27.64 – $40.66 1.9 4.9 33.91 0.9 32.85
10.2 4.6 $22.49 5.5 $19.36
Fair Value Disclosure — Binomial Model
The fair value of stock options granted is estimated using a binomial option-pricing model. The binomial model
requires the input of highly subjective assumptions including the expected stock price volatility, the expected price
63
WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)