Western Digital (WDC)

 

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

 

The Company granted approximately 1.8 million, 2.0 million and 1.6 million shares of restricted stock during 2007, 2006 and 2005, respectively. The restricted stock vests annually over periods from one to five years. The aggregate market value of the restricted stock at the date of issuance was $36 million, $27 million and $17 million in 2007, 2006 and 2005, respectively. These amounts have been recorded as deferred compensation and are being amortized to operating expense over the corresponding vesting periods. For purposes of valuing these awards, the Company has assumed a forfeiture rate of zero based on a historical analysis indicating minimal forfeitures for these types of awards. For the year ended June 29, 2007, the Company charged to expense $29 million related to restricted stock awards that were vested during the period. Of this amount, $12 million represented the incremental cost from the modification of pre-existing awards. As of June 29, 2007, the aggregate unamortized fair value of all unvested restricted stock awards was $38 million, which will be amortized on a straight-line basis over a weighted average vesting period of approximately 2.7 years.

 

During 2005, the Company also awarded certain executives and other key employees 0.5 million restricted stock units with performance-based vesting (“Performance Shares”). However, during 2006, the Company cancelled all outstanding Performance Shares. The impact of these awards, and subsequent cancellation, were not material to the consolidated financial statements.

 

The Company granted approximately 2.0 million, 1.6 million and 0.1 million shares of restricted stock during 2006, 2005 and 2004, respectively. Of the restricted stock granted in fiscal 2006, 1.7 million represents outstanding restricted stock units and 0.3 million represents restricted stock awards (which are not deemed to be outstanding until vesting occurs). The restricted stock vests annually over periods from two to four years. The aggregate market value of the restricted stock at the date of issuance was $26.5 million, $17.1 million and $1.3 million in 2006, 2005 and 2004, respectively. These amounts have been recorded as deferred compensation, a separate component of shareholders’ equity, and are being amortized to operating expense over the corresponding vesting periods. For purposes of valuing these awards, the Company has assumed a forfeiture rate of zero based on an historical analysis indicating minimal forfeitures for these types of awards. For the year ended June 30, 2006, the Company charged to expense $15.9 million related to restricted stock awards that were vested during the period. Of this amount, $7.2 million represented the incremental cost from the modification of pre-existing awards. As of June 30, 2006, the aggregate unamortized fair value of all unvested restricted stock awards was $26.4 million, which will be amortized on a straight-line basis over a weighted average vesting period of approximately 1.5 years.

 

During 2005, the Company also awarded certain executives and other key employees 0.5 million restricted stock units with performance-based vesting (“Performance Shares”). However, during 2006, the Company cancelled all outstanding Performance Shares. The impact of these awards, and subsequent cancellation, were not material to the consolidated financial statements.