Starbucks 2001 Annual Report Download - page 26

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Note 13: Employee Stock and Benefit Plans
STOCK OPTION PLANS
The Company maintains several stock option plans under which the Company may grant incentive
stock options and non-qualified stock options to employees, consultants and non-employee directors.
Stock options have been granted at prices at or above the fair market value on the date of grant.
Options vest and expire according to terms established at the grant date.
The following summarizes all stock option transactions from September 27,1998, through September
30, 2001:
WEIGHTED WEIGHTED
AVERAGE SHARES AVERAGE
SHARES EXERCISE SUBJECT TO EXER CISE
SUBJECT TO PR ICE EXERCISABLE PRICE
OPTIONS PER SHARE OPTIONS PER SHARE
Outstanding, September 27, 1998 39,006,796 $ 6.55 15,121,612 $ 4.24
Granted 16,103,996 11.48
Exercised (7,045,816) 4.76
Cancelled (2,923,874) 9.50
Outstanding, October 3, 1999 45,141,102 8.42 24,161,650 6.78
Granted 9,410,330 12.42
Exercised (8,943,570) 6.54
Cancelled (3,718,136) 10.71
Outstanding, October 1, 2000 41,889,726 9.55 20,330,740 7.82
Granted 9,907,292 20.48
Exercised (6,289,892) 7.45
Cancelled (2,496,195) 14.22
Outstanding, September 30, 2001 43,010,931 $ 12.13 24,407,135 $ 9.16
As of September 30, 2001, there were 42,117,872 shares of common stock available for issuance
pursuant to future stock option grants.
Additional information regarding options outstanding as of September 30, 2001, is as follows:
OPTIONS OUTSTANDING OPTIONS EXERCISABLE
WEIGHTED
AVERAGE WEIGHTED WEIGHTED
REMAINING AVERAGE AVERAGE
RANGE OF CONTRACTUAL EXERCISE EXERCISE
EXERCISE PRICES SHARES LIFE (YEARS) PRICE SHARES PRICE
$0.56 $ 9.00 9,421,471 4.33 $ 6.14 9,068,671 $ 6.05
9.02 10.73 13,857,603 6.59 10.04 11,472,327 10.04
11.00 13.13 8,822,805 7.96 12.00 2,953,491 12.15
13.28 19.63 2,180,434 8.43 17.77 529,312 17.59
19.91 24.63 8,728,618 9.06 20.62 383,334 22.20
$0.56 $ 24.63 43,010,931 6.97 $ 12.13 24,407,135 $ 9.16
EMPLOYEE STOCK PURCHASE PLAN
The Company has an employee stock purchase plan which provides that eligible employees may
contribute up to 10% of their base earnings towards the quarterly purchase of the Company’s common
stock.The employee’s purchase price is 85% of the lesser of the fair market value of the stock on the
first business day or the last business day of the quarterly offering period. Employees may purchase
shares having a fair market value of up to $25,000 (measured as of the first day of the quarterly offering
period for each calendar year). No compensation expense is recorded in connection with the plan.
The total number of shares issuable under the plan is 16,000,000.There were 813,635 shares issued
under the plan during fiscal 2001 at prices ranging from $12.70 to $18.28.There were 807,542 shares
issued under the plan during fiscal 2000 at prices ranging from $10.19 to $16.36.There were 984,462
shares issued under the plan during fiscal 1999 at prices ranging from $7.03 to $12.59. Of the 24,030
employees eligible to participate, 8,577 were participants in the plan as of September 30, 2001.