Starbucks 2005 Annual Report Download - page 69

compensation expense is recorded in connection with the plan. The total number of shares issuable under the
plan is 32.0 million. There were 1,527,880 shares issued under the plan during fiscal 2005 at prices ranging
from $20.07 to $21.96. There were 1,959,184 shares issued under the plan during fiscal 2004 at prices ranging
from $10.77 to $18.96. There were 1,424,092 shares issued under the plan during fiscal 2003 at prices ranging
from $8.66 to $10.43. Since inception of the plan, 14.8 million shares have been purchased, leaving
17.2 million shares available for future issuance. Of the approximately 55,100 employees eligible to
participate, approximately 18,800 were participants in the plan as of October 2, 2005.
Starbucks also has a Save-As-You-Earn (""SAYE'') plan in the United Kingdom that allows eligible U.K.
employees to save toward the purchase of the Company's common stock. The employee's purchase price is
85% of the fair value of the stock on the first business day of a three-year offering period. No compensation
expense was recorded in connection with the plan during fiscal years 2005, 2004 or 2003. The total number of
shares issuable under the plan is 1.2 million. There were 25,382 shares issued under the plan during fiscal 2005
at $7.93. There were 8,960 shares issued under the plan during fiscal 2004 at prices ranging from $7.07 to
$9.48. There were 62,588 shares issued under the plan during fiscal 2003 at prices ranging from $5.66 to $6.01.
No shares had been issued prior to fiscal 2003 and 1.1 million shares remain available for future issuance.
During fiscal 2004, the Company suspended future offerings under this employee stock purchase plan, with
the last offering made in December 2002 and maturing in February 2006.
During fiscal 2004, the Company introduced a U.K. Share Incentive Plan to replace the U.K. SAYE plan.
This employee stock purchase plan allows eligible U.K. employees to purchase shares of common stock
through payroll deductions during six-month offering periods at the lesser of the fair market value of the stock
at the beginning or at the end of the offering period. The Company will award one matching share for each six
shares purchased by the employee under the plan. No compensation expense was recorded in connection with
the plan. The total number of shares issuable under the plan is 1.4 million, of which 10,732 shares were issued
during fiscal 2005 at prices ranging from $19.46 to $24.76. There were no shares issued prior to fiscal 2005,
leaving 1,389,268 available for future issuance.
Deferred Stock Plan
Starbucks has a deferred stock plan for certain key employees that enables participants in the plan to defer
receipt of ownership of common shares from the exercise of nonqualified stock options. The minimum deferral
period is five years. As of October 2, 2005, receipt of 3,394,200 shares was deferred under the terms of this
plan. The rights to receive these shares, represented by common stock units, are included in the calculation of
basic and diluted earnings per share as common stock equivalents.
Defined Contribution Plans
Starbucks maintains voluntary defined contribution plans covering eligible employees as defined in the plan
documents. Participating employees may elect to defer and contribute a portion of their compensation to the
plans up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. For
employees in the United States and Canada, the Company matched 25% to 150% of each employee's eligible
contribution based on years of service, up to a maximum of the first 4% of each employee's compensation. The
Company's matching contributions to all plans were approximately $12.4 million, $9.8 million and $6.8 million
in fiscal years 2005, 2004 and 2003, respectively.
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