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Table of Contents DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The weighted-average fair value of stock options granted under the 2002 Incentive Plan was determined based on the Black-Scholes option pricing model.
The assumptions utilized in this model as well as the weighted-average grant date fair value of stock options granted during Fiscal 2012, Fiscal 2011, and
Fiscal 2010 are presented below:
Fiscal Year Ended
February 3,
2012 January 28,
2011 January 29,
2010
Weighted-average grant date fair value of stock options granted per option $ 5.13 $ 5.01 $ 3.71
Expected term (in years) 4.6 4.5 4.5
Risk-free interest rate (U.S. Government Treasury Note) 1.9% 2.2% 1.8%
Volatility 36% 37% 44%
Dividends —% —% —%
Restricted Stock Awards
Non-vested restricted stock awards and activities For Fiscal 2010, Fiscal 2011, and Fiscal 2012 were as follows:
Number
of
Shares
Weighted-
Average
Grant Date
Fair Value
(in millions) (per share)
Non-vested restricted stock:
Non-vested restricted stock balance as of January 30, 2009 36 $ 22.45
Granted 22 11.39
Vested(a) (13) 22.78
Forfeited (5) 18.23
Non-vested restricted stock balance as of January 29, 2010 40 16.84
Granted 26 14.53
Vested(a) (17) 19.10
Forfeited (7) 15.21
Non-vested restricted stock balance as of January 28, 2011 42 14.71
Granted 22 15.19
Vested(a) (18) 16.47
Forfeited (4) 14.05
Non-vested restricted stock balance as of February 3, 2012 42 $ 14.29
____________________
(a) Upon vesting of restricted stock units, some of the underlying shares are generally sold to cover the required withholding taxes. However, select participants may choose the net shares
settlement method to cover withholding tax requirements. Total shares withheld were approximately 426,000, 354,000, and 157,000 for Fiscal 2012, Fiscal 2011, and Fiscal 2010,
respectively. Total payments for the employee's tax obligations to the taxing authorities were $6 million, $5 million, and $2 million in Fiscal 2012, 2011, and 2010, respectively, and are
reflected as a financing activity within the Consolidated Statements of Cash Flows.
For Fiscal 2012, Fiscal 2011, and Fiscal 2010, the total estimated vest date fair value of restricted stock awards was $273 million, $250 million, and $134
million, respectively.
At February 3, 2012, January 28, 2011, and January 29, 2010, there was $348 million, $341 million, and $393 million, respectively, of unrecognized stock-
based compensation expense, net of estimated forfeitures, related to non-vested restricted stock awards. These awards are expected to be recognized over a
weighted-average period of approximately 1.8, 1.9, and 1.8 years, respectively.
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