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WESTERN DIGITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
RSU Activity
The following table summarizes RSU activity (in millions, except weighted average grant date fair value):
Number
of Shares
Weighted Average
Grant Date
Fair Value
RSUs outstanding at July 3, 2009 ................ 3.1 $21.80
Granted ................................... 1.2 38.42
Vested .................................... (1.1) 20.60
Canceled or expired .......................... (0.1) 27.84
RSUs outstanding at July 2, 2010 ................ 3.1 $28.43
Granted ................................... 1.0 26.75
Vested .................................... (0.8) 24.03
Canceled or expired .......................... (0.2) 32.41
RSUs outstanding at July 1, 2011 ................ 3.1 $28.85
Granted ................................... 1.6 32.87
Assumed .................................. 0.4 38.98
Vested .................................... (1.3) 24.58
Canceled or expired .......................... (0.1) 32.01
RSUs outstanding at June 29, 2012 .............. 3.7 $33.19
Expected to vest after June 29, 2012 ............. 3.6 $32.81
The fair value of each RSU is the market price of our stock on the date of grant. The aggregate value of RSUs
that became fully-vested during 2012 and 2011 was $41 million and $23 million, respectively, determined as of the
vest date. The grant-date fair value of the shares underlying the RSU awards at the date of grant or assumption was
$71 million, $26 million and $45 million in 2012, 2011 and 2010, respectively. These amounts are being recognized
to expense over the corresponding vesting periods. For purposes of valuing these awards, the Company has assumed a
forfeiture rate of 2.4%, 1.8%, and 1.6% during 2012, 2011, and 2010, respectively, based on a historical analysis
indicating forfeitures for these types of awards.
Stock Repurchase Program
The Company’s Board of Directors previously authorized the repurchase of $750 million of common stock in
open market transactions under a stock repurchase program through March 31, 2013. On May 21, 2012, the Com-
pany announced that the Board of Directors authorized an additional $1.5 billion for the repurchase of its common
stock and the extension of the Company’s stock repurchase program until May 18, 2017. As of June 29, 2012 the
entire $750 million previously authorized for repurchase had been utilized. In addition, as of June 29, 2012 $188
million of the $1.5 billion authorized on May 21, 2012 had been utilized. Since the inception of this program in
2005, through June 29, 2012, the Company has repurchased 36 million shares of its common stock for a total cost of
$938 million. The Company repurchased 16.4 million shares for a total cost of $604 million during 2012. The
Company may continue to repurchase its stock as it deems appropriate and market conditions allow. Repurchases
under the stock repurchase program may be made in the open market or in privately negotiated transactions and may
be made under a Rule 10b5-1 plan. The Company expects stock repurchases to be funded principally by operating
cash flows.
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