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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
If an option has an exercise price that is less than the quoted price of the Company’s common stock at the partic-
ular time, the aggregate intrinsic value of that option at that time is calculated based on the difference between the
exercise price of the underlying options and the quoted price of the Company’s common stock at that time. As of
June 29, 2012, the Company had options outstanding to purchase an aggregate of 15.8 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
$150 million at that date. During 2012, 2011 and 2010, the aggregate intrinsic value of options exercised under the
Stock Plans was $53 million, $25 million and $72 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 June 29, 2012 (in millions, except per share amounts):
Options Outstanding Options Exercisable
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
$ 3.85 – $ 6.67 2.8 4.3 $ 6.47 0.7 $ 5.92
$ 7.48 – $19.90 3.5 3.5 14.48 2.6 14.86
$ 20.13 – $26.01 2.4 3.6 23.92 1.9 23.64
$ 26.17 – $35.74 5.0 5.5 28.30 1.2 27.18
$ 35.75 – $40.66 2.1 5.4 37.22 0.7 36.13
15.8 4.5 $ 21.89 7.1 $20.55
SARs Activity
The share-based compensation liability for SARs assumed is recognized for the portion of fair value for which
service has been rendered at the reporting date. The share-based liability is remeasured at each reporting date through
the requisite service period. The Company uses estimated forfeiture rates on unvested awards to calculate a liability
only for those SARs expected to vest. The total vested portion of the SARs represents the proportion of the fair value
of the SARs vested based upon the percentage of the required service rendered at the reporting date. As of June 29,
2012, 1.7 million SARs were outstanding with a weighted average exercise price of $7.67. There were no SARs
granted and all other SARs activity was immaterial to the consolidated financial statements for the year ended
June 29, 2012.
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