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The following table summarizes our performance-based restricted stock unit activity for the fiscal year ended
March 31, 2008:
Performance-
Based Restricted
Stock Units
(in thousands)
Weighted-
Average Grant
Date Fair Value
Balance as of March 31, 2007 . . . ................................ — $ —
Activity for the fiscal year ended March 31, 2008:
Granted .................................................. 691 54.51
Vested................................................... — —
Forfeited or cancelled ........................................ — —
Balance as of March 31, 2008 . . . ................................ 691 54.51
The weighted-average grant date fair value of performance-based restricted stock units is based on the quoted
market value of our common stock on the date of grant. The weighted-average fair value of performance-
based restricted stock units granted during fiscal year 2008 was $54.51. There were no performance-based
restricted stock units granted during fiscal years 2007 and 2006. There were no performance-based restricted
stock units that vested during fiscal years 2008, 2007 and 2006.
Employee Stock Purchase Plan
Pursuant to our 2000 Employee Stock Purchase Plan (“ESPP”), eligible employees may authorize payroll
deductions of between 2 and 10 percent of their compensation to purchase shares at 85 percent of the lower of
the fair market value of the common stock on the date of commencement of the offering or on the last day of
each six-month purchase period.
At our Annual Meeting of Stockholders, held on July 26, 2007, our stockholders approved an amendment to
the 2000 Employee Stock Purchase Plan to increase by 1.5 million the number of shares of common stock
reserved for issuance under the Purchase Plan. As of March 31, 2008, we had 4 million shares of common
stock reserved for future issuance under the ESPP.
During fiscal 2008, we issued 892 thousand shares under the ESPP with exercise prices for purchase rights
ranging from $40.15 to $42.86. During fiscal 2008, 2007 and 2006 the estimated weighted-average fair value
of purchase rights was $14.57, $16.51 and $15.42, respectively.
We issue new common stock out of the ESPP’s pool of authorized shares. The fair value above was estimated
on the date of grant using the Black-Scholes option-pricing model assumptions described in this note under
the headings “Adoption of SFAS No. 123(R)” and “Pre-SFAS No. 123(R) Pro Forma Accounting Disclosures”.
Pre-SFAS No. 123(R) Pro Forma Accounting Disclosures
Prior to the adoption of SFAS No. 123(R), we accounted for stock-based awards to employees using the
intrinsic value method in accordance with APB No. 25 and adopted the disclosure-only provisions of
SFAS No. 123, as amended.
Had compensation cost for our stock-based compensation plans been measured based on the estimated fair
value at the grant dates in accordance with the provisions of SFAS No. 123, as amended, we estimate that our
reported net income and net income per share would have been the pro forma amounts indicated below. The
fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model.
Annual Report
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