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These excerpts taken from the WDC 10-K filed Aug 20, 2008. Stock-Based
Compensation
In connection with the Acquisition, each outstanding option to
purchase shares of Komag’s common stock with an exercise
price below $32.25 as of the date of the Acquisition was
converted into a right to receive $32.25 in cash less the
exercise price of the option. In addition, each share of Komag
restricted common stock granted on or before September 5,
2007 was converted into $32.25 in cash. These converted option
and restricted stock awards are payable in cash according to
their original vesting schedules. All shares of restricted stock
and options remain subject to their original terms, including
the terms and conditions of Komag’s Amended and Restated
2002 Qualified Stock Plan, the applicable restricted stock and
option agreement and the Merger Agreement. As of June 27,
2008, the future expense for the converted Komag unvested
options and restricted stock awards is $4 million to be
paid in cash, which will be expensed based on individual award
vesting terms through April 2010.
Stock-Based Compensation In connection with the Acquisition, each outstanding option to purchase shares of Komag’s common stock with an exercise price below $32.25 as of the date of the Acquisition was converted into a right to receive $32.25 in cash less the exercise price of the option. In addition, each share of Komag restricted common stock granted on or before September 5, 2007 was converted into $32.25 in cash. These converted option and restricted stock awards are payable in cash according to their original vesting schedules. All shares of restricted stock and options remain subject to their original terms, including the terms and conditions of Komag’s Amended and Restated 2002 Qualified Stock Plan, the applicable restricted stock and option agreement and the Merger Agreement. As of June 27, 2008, the future expense for the converted Komag unvested options and restricted stock awards is $4 million to be paid in cash, which will be expensed based on individual award vesting terms through April 2010. This excerpt taken from the WDC 8-K filed Nov 19, 2007. Stock-Based
Compensation
Effective January 2, 2006, the Company adopted
SFAS No. 123R using the modified prospective method,
in which compensation cost is recognized based on the
requirements of SFAS 123R for (a) all share-based
payments granted or modified after the effective date and
(b) for all awards granted to employees prior to the
effective date of SFAS 123R that remain unvested on the
effective date. The Company elected to amortize stock-based
compensation for awards outstanding and unvested on its adoption
of SFAS 123R as well as for awards granted on or after its
adoption of SFAS 123R on a straight line basis over the
requisite service (vesting) period for the entire award. The
vesting period for stock options has generally been four years
and the vesting period for stock purchase rights generally has
been three years.
Stock-based compensation expense related to outstanding stock
options and stock purchase rights amounted to $3.1 million
and zero for 2006 and 2005, respectively, and $15.0 million
and $3.2 million for 2006 and 2005, respectively. As a
result of adopting SFAS 123R on January 2, 2006, the
Company’s income before income taxes and net income for
2006 were approximately $3.4 million and $3.3 million
lower, than if it had continued to account for stock-based
compensation under APB 25. Basic and diluted net income per
share for 2006 were approximately $0.10 and $0.08 lower,
respectively, due to the adoption of SFAS 123R.
As of December 31, 2006, there was approximately
$27.2 million of total unrecognized compensation cost
related to stock-based compensation arrangements. The cost is
expected to be recognized on a straight line basis over the
remaining vesting period of the stock-based awards through the
third quarter of 2010. The weighted average remaining vesting
period is approximately two years.
This excerpt taken from the WDC 10-K filed Aug 28, 2007. Stock-Based
Compensation
Effective July 2, 2005, the Company accounts for all
stock-based compensation in accordance with the fair value
recognition provisions in
SFAS No. 123-R,
“Share-Based Payment.” Under the fair value
recognition provisions of
SFAS No. 123-R,
stock-based compensation cost is measured at the grant date
based on the value of the award and is recognized on a
straight-line basis as expense over the vesting period. Under
SFAS No. 123-R,
the Company is required to use judgment in estimating the amount
of stock-based awards that are expected to be forfeited. If
actual forfeitures differ significantly from the original
estimate, stock-based compensation expense and the results of
operations could be materially impacted.
Prior to the adoption of
SFAS No. 123-R,
the Company accounted for stock-based employee compensation
plans (including shares or other equity instruments issued under
its stock incentive plans and employee stock purchase plan) in
accordance with Accounting Principles Board Opinion No. 25,
“Accounting for Stock Issued to Employees” and its
related interpretations (“APB No. 25”), and
followed the pro forma net income, pro forma income per share,
and stock-based compensation plan disclosure requirements set
forth in SFAS No. 123, “Accounting for
Stock-Based Compensation.”
The fair values of all stock options granted subsequent to
January 1, 2005 were estimated using a binomial model and
the fair values of all options granted prior to
December 31, 2004 and all ESPP shares were estimated using
the Black-Scholes-Merton option pricing model. Both the binomial
and the Black-Scholes-Merton models require the input of highly
subjective assumptions.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. Stock-Based
Compensation
Effective July 2, 2005, the Company accounts for all
stock-based compensation in accordance with the fair value
recognition provisions in
SFAS No. 123-R,
“Share-Based Payment.” Under the fair value
recognition provisions of
SFAS No. 123-R,
stock-based compensation cost is measured at the grant date
based on the value of the award and is recognized on a
straight-line basis as expense over the vesting period. Under
SFAS No. 123-R,
the Company is required to use judgment in estimating the amount
of stock-based awards that are expected to be forfeited. If
actual forfeitures differ significantly from the original
estimate, stock-based compensation expense and the results of
operations could be materially impacted.
Prior to the adoption of
SFAS No. 123-R,
the Company accounted for stock-based employee compensation
plans (including shares or other equity instruments issued under
its stock incentive plans and employee stock purchase plan) in
accordance with Accounting Principles Board Opinion No. 25,
“Accounting for Stock Issued to Employees” and its
related interpretations (“APB No. 25”), and
followed the pro forma net income, pro forma income per share,
and stock-based compensation plan disclosure requirements set
forth in SFAS No. 123, “Accounting for
Stock-Based Compensation.”
The fair values of all stock options granted subsequent to
January 1, 2005 were estimated using a binomial model and
the fair values of all options granted prior to
December 31, 2004 and all ESPP shares were estimated using
the Black-Scholes-Merton option pricing model. Both the binomial
and the Black-Scholes-Merton models require the input of highly
subjective assumptions.
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