Starbucks 1999 Annual Report Download - page 25

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As required by SFAS No. 123, the Company has determined that the weighted average estimated
fair values of options granted during fiscal 1999, 1998 and 1997 were $8.86, $7.20 and $5.42 per
share, respectively. Had compensation costs for the Company’s stock-based compensation plans
been accounted for using the fair value method of accounting described by SFAS No. 123, the
Company’s net earnings and earnings per share would have been as follows (in thousands, except
earnings per share):
 
 
Fiscal year ended   . 
October 3, 1999
Net earnings $ 101,693 $ 75,326
Net earnings per common share
Basic $ 0.56 $ 0.41
Diluted $ 0.54 $ 0.40
September 27, 1998
Net earnings $ 68,372 $ 51,595
Net earnings per common share
Basic $ 0.39 $ 0.30
Diluted $ 0.37 $ 0.28
September 28, 1997
Net earnings $ 55,211 $ 45,808
Net earnings per common share
Basic $ 0.35 $ 0.29
Diluted $ 0.33 $ 0.28
In applying SFAS No. 123, the impact of outstanding stock options granted prior to 1996 has
been excluded from the pro forma calculations; accordingly, the 1999, 1998 and 1997 pro forma
adjustments are not necessarily indicative of future period pro forma adjustments.
  
Starbucks maintains voluntary defined contribution plans covering eligible employees as defined
in the plan documents. Participating employees may elect to defer and contribute a percentage of
their compensation to the plan, not to exceed the dollar amount set by law. For certain plans, the
Company matches 25% of each employee’s eligible contribution up to a maximum of the first 4%
of each employee’s compensation.
The Company’s matching contributions to the plans were approximately $0.9 million, $0.8 million
and $0.6 million for fiscal 1999, 1998 and 1997, respectively.
.
STARBUCKS COFFEE COMPANY